Talk:Factoring (finance)

message: Use of the term Lion's Share is quite unusual in an encyclopedia article.
: fixed novacatz 13:16, 27 February 2006 (UTC)
thread_title:  problems 

message: I removed Financeexpert revision (seen here: ). Because I felt it was biased and cited no sources. Feel free to slap me on the wrist if I did wrong. --Revotfel 00:27, 14 November 2007 (UTC)
replies: text: Unencyclopedic and promotional; concur with your removal of the material. Kuru talk 01:48, 14 November 2007 (UTC)
thread_title: Removal of content added

message: Should an addition be made to refer to the specific derivative called business cash advance or merchant cash advance, where companies:
# Sell credit card receivables at a discount
# Have the payback deducted from future credit card sales
# Pay the debt back as a percent of net sales.
Industry leaders claim they are providing 20,000 fundings worth nearly $1B US each year.
Sitecreations (talk)  —Preceding undated comment was added at 00:43, 24 July 2008 (UTC)
thread_title:  Add Merchant Cash Advance Section? 

message: To further clarify the difference between factoring and invoice discounting, I have moved the old Accounts receivable financing article to Invoice discounting so that there is greater precision in the naming of articles covering this subject, since "accounts receivable financing" fails to specify the method of financing, although the article itself clearly differentiates itself from factoring. AnthonyUK (talk) 23:06, 28 November 2008 (UTC)
thread_title:  [[Invoice discounting]] clarification 

message: I added a link and reference to Walter E. Heller.  It may be redundant or insignificant. Mwalla (talk) 20:29, 26 February 2009 (UTC)
thread_title:  History 

message: The link is www.factoring.org.  The association has over 350 member organizations who are factors and provides great information on factoring for readers who want to learn more.  They also have a publication called the Commercial Factor which is on their site at https://www.factoring.org/index.cfm?page=information_news.  
Linda50Words (talk) 22:14, 16 May 2010 (UTC)
replies: text: The above comment is by someone who has admitted a COI, stating that the IFA is her "client" and that she works in "PR". Please exercise extreme caution and research carefully before spamming for her and her client. WuhWuzDat 01:17, 17 May 2010 (UTC)
replies: text: The latest entry of this link included "then hit Save Page", which seems to indicate that she is now canvassing others to spam the link.  I'm going to semi-protect for now, then blacklist the link if it appears on other articles.  Kuru (talk) 01:04, 20 May 2010 (UTC)
thread_title:  The link to the International Factoring Association should be added 

message: An FYI that we just got a compliment for this article on OTRS.  --  Zanimum (talk) 19:18, 15 June 2010 (UTC)
thread_title: Thumbs up

message: Please remove all this item and references as not accurate. 
The Walter Heller listed under Walter E. Heller is not the same as the Walter Heller given in the citations. Case in point, the citations refer to a person that is still alive however the wiki entry of Walter heller refers to a person that passed away. This looks like self promotion.
Lastly, I have been in the industry for a decade and never heard of Walter Heller as a prioneer of the factoring industry.
Walter E. Heller was a pioneer on the use of factoring in the United Stateshttp://www.georgiaencyclopedia.org/nge/Article.jsp?id=h-1017http://industry.americancashflow.com/Bio_Walter_Heller.aspx
Marco terry (talk) 17:46, 1 July 2010 (UTC)
replies: text: It appears to be the same person to me, the Time article is dated 1960. CTJF83 chat 18:40, 1 July 2010 (UTC)
replies: text: Concur with ctjf83 - there appears to be quite a bit of information on him available.  This does not seem like self promotion. Kuru (talk) 22:48, 1 July 2010 (UTC)
thread_title:  Edit request from Marco terry, 1 July 2010 

message: The following reference was tacked onto the Reference section. In case it might have use in supporting article content, I've moved it here:
* Farag, Ibrahim (2013). Factoring and accounts receivable discounting
Jojalozzo 04:14, 24 February 2014 (UTC)
thread_title:  Unused ref 

message: Please have some knowledge of Financial Accounting (this is a Financial Accounting Concept) before making changes to this article.  Please do not make an attempt to "correct" a cited section; especially if you are not using an accredited source (such as the ISAB, the AICPA - FASB in the USA, or textbooks from an accredited University), or at least a "For Dummies" or "Teach Yourself..." books from reputable sources.  I, other viable contributors, and the readers (looking for accredited and reliable information) will all appreciate if this courtesy is extended.  A very good college textbook used in many accredited Accounting Programs (leading to a CPA) is: Donald E. Kieso, Kieso, Jerry J. Weygandt, Terry D. Warfield, Ph.D., "Intermediate Accounting", Wiley (Hardback - 768 pages).
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Thank you all in advance for your trustworthiness, and good actions.  — Preceding unsigned comment added by Mgmwki (talk • contribs) 03:09, 25 May 2014 (UTC)
thread_title:  Please be Courteous: Do Not Remove valid Cited Sections, Only Add valid Cited Sentences 

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Credit-Card sales are an example of a "Third Party Beneficiary Contract"; it is not an example of "factoring".  A Third Party Beneficiary Contract "is one in which third party receives benefits from an agreement made between a promisor and promisee," even though the "Third Party is not a party to the contract".O. Ray Whittingron, CPA, PhD, "Wiley CPA Exam Review, Volume Outlines and Study Guides", John Wiley & Sons Inc., Hobeken, New Jersey, 2013.  See Suretyship, Guaranty, and Third Party Contracts.  The retail store (for example) has an agreement with a bank (the Credit-Card issuer), in which the bank will render payment directly to the retailer for any sales (the benefit) made to the Credit-Card holder.This is is not more advanced than 'Intermediate Financial Accounting 1' ('Intermediate Financial Accounting 2' & 'Advanced Accounting' are required for American certification as a CPA); a relatively basic set of Accounting concepts a college student first learns in his Accounting Courses.  - www.principlesofaccounting.com/chapter7.
:"Banks and financial services companies have developed credit cards that are widely accepted by many merchants, and eliminate the necessity of those merchants maintaining separate credit departments. Popular examples include MasterCard, Visa, and American Express. These credit card companies earn money off of these cards by charging merchant fees (usually a formula-based percentage of sales) and assess interest and other charges against the users. "
This is similar to the situation in which the "Father says: 'ship the goods to my son and I will pay for them.'" In this later example, the father is "engaging in an an original promise to pay for goods that the creditor delivers to son." Because of the contract the retailer (in my prior example) has with the bank (Credit-Card issuer) in which the bank agrees to render payment directly to the retailer for Credit-Card sales, and  "oftentimes same day funding of the transaction is made by the credit card company", "...Some bank card-based transactions are essentially regarded as cash sales since funding is immediate."
:01-09-X3_________Cash____________________________________________980
:________________Service Charge Exp._________________________________20
:____________________________Sales Rev.________________________________________1,000
:01-09-X3 Note:____Sold Merchandise on "Bank Card"; same day funding, Net of 2% fee assessed by the bank.
Other card sales may involve delayed collection and are initially recorded as credit sales:
:01-09-X3_________Accounts Receivable (Bank Debt)____________________1,000
:____________________________Sales Rev.________________________________________1,000
:01-09-X3 Note:____Sold Merchandise on "non Bank Card"
"When collection occurs on January 25, notice that the following entry includes a provision for the servpaying ice charge. "
:01-25-X3_________Cash____________________________________________980
:________________Service Charge Exp._________________________________20
:___________________________Accounts Receivable (Bank Debt)_______________________1,000
:01-25-X3 Note:____Collected amount due from credit card company; net of 2% fee
The retailer has a contractual claim on the bank (promisor) for the sales the retailer (promisee) made to the Credit-Card holder (third party).  The Merchant pays a "fee" to the bank for the contractual privilege of getting assured payment from the bank instead of having to maintain a credit department that collect on customers' Account receivable. There is no financing arrangement between the Credit-Card holder and the retail store selling him/her the goods in question, and therefore the retailer maintains no customer account receivable assets.  Instead, the merchants' separate agreement with the bank (Credit-Card issuer) does not involve the Credit-Card holder (account receivable for Credit-Card sales are "claims" against the bank who promises to pay on Credit-Card sales).  The bank has a separate "financing arrangement" with the Customer; involving "Interest", "Late Payment Charges", "Line of Credit", etc.
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As part of the above January 25 transaction, the bank Recognizes the Account receivable that is associated with the "Claim" the bank has against the Credit-Card holder for the goods purchased through the Credit-Card agreement (and paid for by the bank initially).
:01-25-X3_________Accounts Receivable ( Customer )____________________1,000
:___________________________Service Charge Rev._________________________________20
:___________________________Cash___________________________________________1,000
:01-25-X3 Note:____Pay merchant for Credit-Card sale; net of 2% fee.
When the customer pays the bank for the Credit-Card bill after the receiving the statement from the bank, the bank records:
:01-30-X3_________Cash____________________________________________1,000
:___________________________Accounts Receivable ( Customer )_______________________1,000
:01-25-X3 Note:____Customer pays the Credit-Card bill.
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Since the retailer does not even maintain a credit department, nor record any Account receivable on its customers' sales, it has no account receivable asset to sell!  Therefore, the Credit-Card sales, done via a "Third Party Contract" with the bank (Credit-Card issuer) is not a Factoring arrangement!
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If those reading this do not understand the above accounting journal entries (too "convoluted" for you), then you do not have any business writing any information in Wikipedia about either Accounting or Finance!  If you obtained a "C" or "D" in (Principles of) Accounting in college and have not worked in the field, then you do not have any business writing any information in Wikipedia about either Accounting or Finance!  Entering bad information to misinform readers who want information concerning a financial subject is worse than giving them no information and thereby forcing them to go elsewhere for valid information.  It is also a bit annoying to those of us who take care to cite the writing (as is required), and to ensure it is valid and informative to the reader on the financial subject.  Please be considerate.
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One final note in regards to Credit-Card sales and the reference factoring arrangements.  Looking over the Farag, I. 2013 reference with care reveals the author indicates that Credit Card arrangements seem to be somewhat similar to factoring arrangements solely because the promisee relinquishes any Credit risk associated with the Credit-Card sale to the Third Party, and the promisor takes on all of the Credit risk associated with the financing arrangement the bank (Credit-Card issuer) has with the customer (Third Party Credit-Card holder).MGMontini (talk) 05:20, 30 May 2014 (UTC)
thread_title:  Credit Card sales: 3rd Party Financing, not Factoring 

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Thank you for your recent grammar edit that corrected the "the the" entry to make it solely a "the" entry within the sentence.  I must apologize also for using the 'discount' within the text instead of proper 'discounting' reference.
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The term "Discounts and Allowances" is associated with "Retail Sales" of goods and services, while "Discounting" is associated with the sale of financial assets.  Therefore, a financial asset (such as a Receivable) that is sold at a discount is different from a "Retail good" that is sold at a discount, and the discount on the financial asset is calculated in a mathematical manner that completely different from the calculation used to determine the discount on a Retail good.  Though both "discounts" are "market related", in that "price" of the financial asset must be "competitive" with the price of other financial assets in the same way the price of Retail goods must also be "competitive" within the Retail Market, they are calculated differently and represent a different set of market variables.  A "Discount" on a financial asset uses the Discounting process that uses the Interest Rate to determine the discounted price of the financial asset.  The "Discount" on a Retail good is associated with the reduction in the retail price of the good that is the result of either a decline in the Demand for the good at the old retail price.  The Interest Rate variable is determined by a number of factors, including Federal Reserve (Money supply) policy, overall economic activity and the "Balance of Payments" associated with International trade, and the varying value of various currencies around the world.  Within the Retail Markets, the retail price of the good will decline mostly because either the overall "Consumer demand" for the good declines, or there is an increase in the "Supply" of the good from other suppliers (other firms); where may be completely "Independent" of the variables affecting overall interest rates.  
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Therefore, I am replacing your reference to Discounts and allowances with a reference to discounting since we are talking about the sale of a financial asset.MGMontini (talk) 15:43, 25 June 2014 (UTC)
thread_title:  Discounting Vs. Discounts and Allowances - Financial Assets Vs. Retail Goods/Services 

message: Invoice discounting should be merged into this article, as they are the exact same subject. Both pages in question list these terms as synonyms in their intro. This article (factoring) is a little messy already and the other article (invoice discounting) is pretty spare, so I don't think there will be much to copy over in this instance. Mxheil (talk) 16:53, 4 May 2016 (UTC)
thread_title:  Merger Proposal 

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