Does 'factoring' come under a short term finance? (1 Viewer)

[mysticwater]

Does 'factoring' come under a short term finance? cos this is what my teacher seems to think

but iv checked under the syllabus and it comes under long term

so which is correct?

 

[the-derivative]

Does 'factoring' come under a short term finance? cos this is what my teacher seems to think

but iv checked under the syllabus and it comes under long term

so which is correct?

Not true, factoring doesn't come under long term. Factoring is actually classified under external sources of finance - which is the same category as short term and long term financing.

Technically your teacher is right, because factoring allows for an immediate source of finance, BUT, the syllabus tends to seperate it from short term external financing.