Factoring | CS/CA Inter, CA Final SFM (Old Syllabus)

#Factoring, #ReceivablesManagemnt, #WorkingCapitalManagement, #CAInterFM, #CSExecutiveFM
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Factoring is an arrangement were a firm appoints an agent known as “Factor”, who would collect the outstanding balances from the debtors of the firm and the firm will pay commission or fees for such services.
The factor may also advance money to the firm at a predefined interest rate and therefore the factor will earn interest income on the amount advance.
Generally the factor will maintain a margin or a reserve while advancing the money to the firm.
For example, if debtors balance is ` 10,00,000, the factor is retaining a margin of 20%, then the factor will provide an advance of ` 8,00,000 to the firm.
Types of Factoring:
1. Non- recourse Factoring
2. Recourse Factoring
Under a Non- recourse Factoring, if there is any loss arising from bad debts, such loss will be borne by the factor.
Under a Recourse Factoring, the bad debts losses are borne by the firm itself.
Generally the commission rate is higher in a non-recourse arrangement.
Important Notes:
1. If the question uses the language like, “the factor agrees to buy the receivables of the firm” or “the firm sells its receivables to the factor” then it is implied that all risks and rewards associated with receivables have been transferred to the factor.
This implies that the factoring is on non-recourse basis.
2. Generally in a factoring arrangement, the factor might recover fees and interest upfront, i.e., at the beginning of the arrangement. In such case, the factor will adjust the amount advanced which will be reduced by such upfront fees and interest.
3. Sometimes there may be an offer of advance by bank and the firm has to decide, whether to accept the arrangement offered by factor or the advance offered by bank.

Пікірлер: 89

  • @sarathkrishna6868
    @sarathkrishna68683 жыл бұрын

    Thank you sir providing us with this wonderful class . Never in the 44 minutes did I feel bored rather I was more excited to go to the next level

  • @rosemariajose3511
    @rosemariajose35114 жыл бұрын

    It feels like a live session, even we forget it's an lecture. It's a perfect revision helping to recollect each and every points within a short span of time. Since the concepts are made clear at the beginning, practical problems can be approached and cracked in an easy way. I suggest every commerce students to watch this video to get the utmost clarity about factoring. Thank you sir for this wonderful and meaningful class☺

  • @sworld1264

    @sworld1264

    3 жыл бұрын

    Very true... Even I felt same... Thanks a lot sir🙏🙏

  • @antonymosses3880
    @antonymosses38803 жыл бұрын

    You are true godsend sir.You have get all the qualties of a good teacher..you don't just teach, you are making a road ahead.... You make the concepts crystal clearly. Just amazing

  • @amalajames4988
    @amalajames49883 жыл бұрын

    may not have always shown it, but I’m grateful to have had such an awesome teacher like you. Thank you for all the wisdom you shared and setting a great example.🙏

  • @aj_7321
    @aj_73213 жыл бұрын

    Sir, you truly care about your students.we can feel your support.your expertise in teaching has put our minds ease.

  • @amrathharis4479
    @amrathharis44793 жыл бұрын

    The concept of factoring illustrated in a practical light, in the best possible way👍... Was able to absorb every bit of it... Thank You sir..

  • @najlahnoushad4653
    @najlahnoushad46534 жыл бұрын

    This whole entangled mesh of *FACTORING* has been precisely untied by equal portions of undying sincerity and immense knowledge. Thank you sir.

  • @ayshariya9090
    @ayshariya90904 жыл бұрын

    Any other class I would hear henceforth would be criticized using this as a Reference point. Infact I wouldn't need another consultant for this topic!! Thank You NJ SIR.

  • @devapriyab2231
    @devapriyab22314 жыл бұрын

    "Simplifying something is an art and u are the picasso of it"

  • @devapriyab2231
    @devapriyab22314 жыл бұрын

    A mediocre teacher tells , a good teacher explains and a superior teacher inspires ....and u possess all the qualities... It says that " if u cannot explain something simple enough for everyone ..then u have not understood it well enough....but only u can make it such simplified...simplifying something is a great art and u are the master of it ...."

  • @mehjanashahab8589
    @mehjanashahab85894 жыл бұрын

    This video has one of the best quality in both visual and sound. The clarity in speaking and use of simple language makes it even more understandable . Adding to the quality is the pictorial representation of concept, working out of questions and better presentation of answers which would be much helpful in examination point of view. Provides conceptual clarity in areas of factoring, re-course and non-recourse basis, upfront interest method etc. Well explained.This video assure a real- in class live effect.. ! Thnq u #SFMGURU

  • @saranyamolk.m1352
    @saranyamolk.m13524 жыл бұрын

    The concept of factoring made by you more effective.👍

  • @jovasmadampisseril6164
    @jovasmadampisseril61644 жыл бұрын

    I would suggest everyone who faces pressure in the concept of factoring to watch this video, where the facts and concepts are presented and explained in a very simple manner, easier to understand with diagrams & pictures and sweet way of teaching. Concept of Factoring is 100% clear with the additional questions, helpful in examination point of view. Plus point to that, is the real in-class effect, far above virtual classes. The audio & video quality is great!! This video session gave a boost to my confidence level! Thank You Sir🙏🏻 Watch it, understanding factoring will be crystal clear

  • @ajaimkumar8559
    @ajaimkumar85594 жыл бұрын

    I am now easly able to crack any question that arises out of factoring as your class portrays the concept of factoring in the simplest way possible...

  • @kinjalpatel3297
    @kinjalpatel32975 жыл бұрын

    Factoring now made extremely easy by u sir. for a self study student like me... .. Thank U very much... Grp 2 clrd... only Grp 1 left to become CA

  • @jasminjoseph8212
    @jasminjoseph82124 жыл бұрын

    This is the first online lecture video which I have watched till the end.this video is more like a virtual class thank you so much sir...........🙂

  • @abingeevar8905
    @abingeevar89054 жыл бұрын

    Very simple and understandable style of teaching sir..thnk you

  • @edwinfrancisediee949
    @edwinfrancisediee9494 жыл бұрын

    It was an awesome time watching this video....great help. Got grip on this topic factoring.....thanks a lot.

  • @akhilajoy7805
    @akhilajoy78054 жыл бұрын

    Concept of factoring was explained in its best way....... That everyone could easily understand it.

  • @sherrymatharoo5867
    @sherrymatharoo58673 жыл бұрын

    Awesome, every time I left this topic, never knew it could be this simple..!! Best video on factoring..thank you Sir

  • @aiswaryar6978
    @aiswaryar69784 жыл бұрын

    Sir , this was a well structured and engaging class on factoring . In 44 minutes, you managed to explain the nitty gritty of how factoring works! And has also covered all types of problems in the examination point of view . Looking forward for more such videos . 😄👍

  • @vimalavijayan3440
    @vimalavijayan34404 жыл бұрын

    Thank you sir, well explained the meaning of factoring and problems

  • @athirapjayaraj128
    @athirapjayaraj1284 жыл бұрын

    Gurur brahma, gurur vishno, gurur devo maheswara.... guru sakshal parabrahma, thasmai sree guruve namah..... Bharatheeya culture places guru / teacher at par with god... becoz teacher helps an illterate disciple to gain knowledge & realise god... When I watched ur youtube channel on *Finance Management* I thanked the almighty for giving me a chance to attend your classes... indeed it was a dream come true for me... because I could pick up even the smallest & minute points from your classes... now I am sure that I can crack the CA exam with your blessings sir... Thank you sir & keep up the great work.. the CA student fraternity needs great masters like you..... jai hind... 🌹 🌹🌹🙏

  • @alidasebastian6052
    @alidasebastian60524 жыл бұрын

    It is impossible to thank ....there are no words to appreciate...... because your classes & way of lectures are helping me to solve problems in the way of concepts ways & not in the way of byhearting I expected more class ....

  • @pranavp3102
    @pranavp31023 жыл бұрын

    I really appreciate your effort to make everyone ward study even in these kind of pandemic situation we are facing.

  • @poojithavenkiteswaran5756
    @poojithavenkiteswaran57563 жыл бұрын

    great class sir........As always Lecture is in such a manner that ANY student who wish to learn could easily understand. thank you sir

  • @abhiramyambily1651
    @abhiramyambily16514 жыл бұрын

    Thank you sir .. Concepts as well as problems are well explained.it made understanding easier..calculations are also made clear like how each amount is is derived or from where it is taken. Just like classroom learning. REALLY WORTH OF 45 MINUTES even during these exam times 👍👍👍👍👍👍👍

  • @sanjaysankar4625
    @sanjaysankar46253 жыл бұрын

    Thank you sir.. You are making the concepts to reside within ourselves,So that we won't forget it... You are making FM interesting

  • @bhumikabolia1479
    @bhumikabolia14793 жыл бұрын

    Thank you sir. In less time you taught all what is required to solve ques

  • @rohanpinto5692
    @rohanpinto56922 жыл бұрын

    I learnt more from this video, than in university class. Thank you.

  • @sreelekhabaiju651
    @sreelekhabaiju6513 жыл бұрын

    Thank you so much sir... Your way of explanation is outstanding I heard before.. You made the whole concept of factoring more easy to understand.. Practical problems can be solved more accurately in less time, because the concept is very clear

  • @mohammedshahad7852
    @mohammedshahad78524 жыл бұрын

    Factual facts for Factoring to follow, feeling formidable....👨🏻‍🎓👨🏻‍🎓👨🏻‍🎓👨🏻‍🎓

  • @jyothilekshmikr99-
    @jyothilekshmikr99-4 жыл бұрын

    Thank you so much sir for your well defined explanation about factoring. You really helped me a lot, when i was struggling about on this topic. Now factoring become very easy topic to me. This is an awesome video. "You are a master of simplification. " Because your way of teaching is very simple and understandable. Before watching your video, i thought that factoring is a tough area in finance. But you made it very easy to me to catch the concept. It is really worth of 44 minutes even during these exam time. You are doing a great job sir. You are teaching from the HEART and not from your books. It's a better quality needed for all teachers. You are really a GOD's gift. Not every teacher deserves to be called that one bcoz that title is reserved for great ones like YOU. Expecting more videos of you. May God bless u sir. Thank you.. 🙏🙏🙏🙏

  • @rahuljoshirahulmagic
    @rahuljoshirahulmagic4 жыл бұрын

    You truly are SFM guru. Great video sir.

  • @christinvarghese4261
    @christinvarghese42613 жыл бұрын

    Within a quantum of time the lecture has enabled to make out a clear conceptual understanding about 'Factoring' . Even the complicated fragments seems to be much easier . Expecting more videos from you, sir...

  • @Camuhammadbilal
    @Camuhammadbilal4 жыл бұрын

    It's feel like one to one class or personal tution. Factoring become very easy and we'll explained sir ..... expecting more videos ...... Thank you sir for making factoring simple . . . കൊള്ളാം.....❤️❤️❤️

  • @sreelakshmivijay251
    @sreelakshmivijay2514 жыл бұрын

    Very helpful video Got a clear picture about the topic factoring and the questions covered all the major areas Thankyou sir

  • @abhinavkarthikeyan6007
    @abhinavkarthikeyan60073 жыл бұрын

    Thank you sir ...You have made the concepts really clear for me and this level of clarity that you provide every time inspires me to learn more and more about FM .

  • @lavanya1740
    @lavanya17402 жыл бұрын

    Very clearly understood the concept of factoring sir!!

  • @charushankar2273
    @charushankar22733 жыл бұрын

    Very nice explanation. I understood in one go.thank you so much sir

  • @thusharasaneesh5846
    @thusharasaneesh58463 жыл бұрын

    Your explanation level is very high, every students get understand it... Thank u sir 🌷🌷

  • @harishmaa.iramachandran6907
    @harishmaa.iramachandran69074 жыл бұрын

    Sir, The topic gives me a clear cut meaning....the video helps to recollect the points in a quick span of time... presenting in image helps to recollect the meaning of factoring.........after the completion of factoring topic in lecture the practical problems gives an idea.....now after watching this video it is very easy to find the solution in a short span ...after hearing lecture in class watching in KZread also gives a live clss..... This video really helps me to understand the topic in a lively manner Thank you sir

  • @nishikantarout127
    @nishikantarout127 Жыл бұрын

    Thank you so much sir 🙏🙏. You explained the concept in lucid language 🔥🔥🔥🔥. Thank you so much sir 😇

  • @laijumohanmohan128
    @laijumohanmohan1284 жыл бұрын

    Thank you Sir, well explained

  • @snehan1500
    @snehan15003 жыл бұрын

    Great work Sir !! Actually you created a peaceful atmosphere for travel through the concept...and I'm enjoyed the journey so well..also, no one forget a beautiful journey.. Thank you Sir !!!

  • @vijaychinchali9425
    @vijaychinchali94254 жыл бұрын

    Super sir pls make more videos it's very helpful to a finance students

  • @Abhisng
    @Abhisng4 жыл бұрын

    Well understood by ur explanation

  • @himgireefoodproduct7335
    @himgireefoodproduct73354 жыл бұрын

    गुरुर्ब्रह्मा गुरुर्विष्णुः गुरुर्देवो महेश्वरः । गुरुःसाक्षात् परब्रह्म तस्मै श्रीगुरवे नम: ॥ You made me very clear about the calculation part of factoring account receivables. I'm very much obliged to you if you upload Equity Valuation full series.

  • @gurjantsingh-vi2de
    @gurjantsingh-vi2de4 жыл бұрын

    Factoring, a financial arrangement which you have made crystal clear and simple to every listener..But one significant thing which is repeating itself is an arrangement which provides for earning source for third party or parties like banks or other financial institutions. All is happening under one roof but in different forms and roles..The ultimate purpose is to ease financial transaction smooth in financial world.

  • @BasicQT
    @BasicQT4 жыл бұрын

    Life savior...

  • @anshulsachdeva6836
    @anshulsachdeva68365 жыл бұрын

    Very amazing classes sir.....thanku so much..😊

  • @mohitmalaviya9137
    @mohitmalaviya91373 жыл бұрын

    Thank you Sir🙏

  • @komalchauhan3376
    @komalchauhan33764 жыл бұрын

    Thank you so much

  • @athiranair3768
    @athiranair37683 жыл бұрын

    Thank you sir for this wonderful class....no one can simplify this concept the way you have done it...Now factoring became a memorable concept in my mind...it's because of the style of your teaching.....Once again thank you so much for this valuable knowledge...

  • @tranquillife_
    @tranquillife_3 жыл бұрын

    Thank you so much sir💯

  • @kinjalpatel3297
    @kinjalpatel32975 жыл бұрын

    Yes sir doubt cleared in ur further questions explained....

  • @chetanpanwar1762
    @chetanpanwar17624 жыл бұрын

    Best explanation on youtube .... I've gone through many but you explain it the best sir...thnx a lot for your examples.. Just one question sir when the fees and interest charged upfront on non-recourse basis,thn why the factors are reserving 10% or 20% as reserve..

  • @manishavarman1870
    @manishavarman18703 жыл бұрын

    You explained the concept of factoring in its best way sir.... got an excellent clarity in this concept sir.... NOW, I have a confidence that I can crack any question in the concept of factoring sir..... thank you so much for simplifying the concepts like this......

  • @ujjwalanand6415
    @ujjwalanand64152 жыл бұрын

    Tysm sir❤️❤️

  • @somashekhar4971
    @somashekhar49714 жыл бұрын

    Thank you sir

  • @HemanthKumar-lt6op
    @HemanthKumar-lt6op3 жыл бұрын

    Super explanation tq you so much sir

  • @raghavendra6922
    @raghavendra69222 жыл бұрын

    Sir ur Teaching level is Awesome thanks for this wonderful Lecture😊

  • @abdulbasith5809
    @abdulbasith58092 жыл бұрын

    Soo good.. 🖤

  • @PankajKumar-ot3mg
    @PankajKumar-ot3mg4 жыл бұрын

    Great pedagogy sir

  • @samshersingh8433
    @samshersingh84334 жыл бұрын

    Thank you so much sir

  • @seethalav6604
    @seethalav66043 жыл бұрын

    Thank you Sir.... Your Teaching style and Concept clearing way is so helpful to us.. Great effort sir.. Thank you so much sir for this useful and amazing lecture.... ☺️

  • @cavinodkumarnaidu1750
    @cavinodkumarnaidu17503 жыл бұрын

    Great help Thank you sir

  • @kameshwarikapal9776
    @kameshwarikapal97764 жыл бұрын

    #SFMGURU THANK YOU SIR

  • @renjithkr5361
    @renjithkr53615 жыл бұрын

    Sir pls bring portfolio management classes also ASAP

  • @satveerkaurahluwalia9628
    @satveerkaurahluwalia96284 жыл бұрын

    Thank you so much sir...any hindi medium student can understand very easily

  • @kisanjoshi2045
    @kisanjoshi20454 жыл бұрын

    everything was effective sir but it would have been great if you have added the question in which both recouse and non recourse factoring have been involved.Thankyou sir

  • @priyarohilla982
    @priyarohilla9825 жыл бұрын

    Ty sir

  • @mapa5497
    @mapa549711 ай бұрын

    Sir, why effective cost of factoring > interest rate is preferable?

  • @deephakchandrasekaran9875
    @deephakchandrasekaran98753 жыл бұрын

    Last problem net annual cost amounts to 927200..sir..final answer is right..

  • @delnajose3641
    @delnajose36414 жыл бұрын

    Sir i think if u added the upfront interest calculation's explanation a little more detail too.. this would have been a complete lesson for factoring in all aspects and also i found a simple arithmetical error on the net annual cost calculation in the last question of the session.

  • @meenakshijay1
    @meenakshijay13 жыл бұрын

    Sir... The efforts and dedication you put in is worth admiring and we students really enjoy your way of teaching... The detailed conceptual clarity given is really helpful in not only solving the problems but also understanding its practical application.That is the exact reason why we are enthusiastic to attend your classes :) This lecture was interesting as usual and now, the concept of FACTORING is perfectly clear.Thanks a lot Sir🙌 Eagerly waiting for the upcoming classes...!

  • @mezhumkunnathrahul
    @mezhumkunnathrahul4 жыл бұрын

    Simple, accurate and to the point. A seemingly complex topic simplified such that anyone can understand....... Thank you for making life a lot more easier sir.......

  • @sabarishram1894
    @sabarishram18943 жыл бұрын

    FM from the beginning never been a burdened subject, it has always been a subject which I learn with lots of happiness only bcoz sir you have made this subject lovable by the way of your sublime teaching, it's really heartwarming to be a part of your class sir.... Waiting to hear loads and loads of your lecture sir.... Thank you so much for you efforts for all of us sir.... Love you lotttssss sir....

  • @aditshah9981
    @aditshah99813 жыл бұрын

    Superb

  • @adarshscariya1040
    @adarshscariya10403 жыл бұрын

    No doubts...All clear...

  • @abhishekmangal5220
    @abhishekmangal52204 жыл бұрын

    Sir, is this video will also be useful for elective paper- "Financial services and Capital Market " as per CA FINAL New syllabus? Because there is a last chapter in such Elective paper which is "Chapter-17 Factoring " as per ICAI module. Sir, please reply as I have already started watching this video and I am also getting conceptual clarity. I am eagerly waiting for your reply.

  • @ishitagarg2463
    @ishitagarg24634 жыл бұрын

    Nice

  • @kinjalpatel3297
    @kinjalpatel32975 жыл бұрын

    Sir I think there is some mistake in calculations in first question which u explained.... the amount recd by us from factor is net on Fees & interest so we need to calculate our cost of funds on actually recd & not on receivable of 9 Lkhs... ICAI has also been doing cost calculations on actually received.... Logically it sound more appropriate... Pls advice what I should do... take as per u show or as per Logical as ICAI showed.... Awaiting ur early reply. As I also have my exam in May 2019.....

  • @anjaligupta7084

    @anjaligupta7084

    4 жыл бұрын

    Sir thank you so much for the videos. These are really helpful 😊

  • @aksharastudycircle3513
    @aksharastudycircle35134 жыл бұрын

    Super sir

  • @SanjaySharma-no1jo
    @SanjaySharma-no1jo3 жыл бұрын

    Iska Hindi mai hai kya plz bataye

  • @deephakchandrasekaran9875
    @deephakchandrasekaran98753 жыл бұрын

    Any Ksians ?

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