Business 9609 · AS & A Level · Sources of finance

Sources of finance — practice question

(a)[2]

Define the term 'debt factoring'.

(b)[3]

Briefly explain two disadvantages of using debt factoring in order to improve the cash flow of a business.

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This 5-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Sale of claims on trade receivables” …

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