Asked by Annaliet Martinez on Jul 03, 2024
Verified
Due to the complexity of factoring procedures,factoring is rarely used as a source of short-term financing in Canada today.
Factoring Procedures
The financial transaction where a business sells its accounts receivable to a third party to get immediate cash, minus a fee.
Short-term Financing
This refers to financial obligations or loans that are due for repayment within a period of one year or less, often used for managing daily business operations.
- Comprehend the elements affecting the selection between short-term and long-term financing options.
Verified Answer
ZK
Zybrea KnightJul 06, 2024
Final Answer :
False
Explanation :
Factoring is actually a commonly used method of short-term financing in Canada and many other countries, as it allows businesses to quickly convert their accounts receivable into cash, thereby improving their liquidity and cash flow.
Learning Objectives
- Comprehend the elements affecting the selection between short-term and long-term financing options.
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