Category Archives: 1.17 Account Receivables

Bonuses paid to customers

Bonuses paid to customers are in some industries more common than in others. For instance where it’s often seen is with wholesale merchants and manufacturers. They drive on quantities since it gives them efficiency when we talk about manufacturing and better deals when we talk about companies who buy items in bulk to wholesale them further to stores for an example. In some industries it’s important to give your customers bonuses based on some predetermined conditions to keep your own business flourishing. Continue reading

Factored receivables with nonrecourse

We have now discussed factoring agreements with recourse however what if the risks prevailing are indeed transferred? If you’ve signed on an agreement where you’re in fact selling the receivables and you’re no longer and will not be in future responsible or taking risks in relation to the collection of the invoices, you’ve in fact sold them receivables for good and you can account for the actual collection of the receivables once you’re being paid by the financing company (i.e. bank).  Continue reading