Business Studies · Financial Management
Which of the following is a primary source of Fee Income for the Factor in a typical factoring arrangement?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The interest earned from investing the reserve money kept with the Factor.
- 2The Factoring Commission (Service Fee) charged on the gross value of the invoice for services like sales ledger management and collection.✓
- 3The commission charged on the advance amount provided to the client.
- 4The residual value of the invoice after the debtor has paid the full amount.
Correct answer
The Factoring Commission (Service Fee) charged on the gross value of the invoice for services like sales ledger management and collection.
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