Monthly Archives: October 2016

What Are The Two Types Of Factoring?

factoring-servicesThe business firms that want to make cash flow fast can use factoring method for their invoices. In the factoring process, the business firms sell their account receivables to factoring companies at discounted price and the factoring company bears the risk of debtors. Since the payment is made by the debtors, the factors get their payments only after the payments for all the outstanding invoices have done. The debtor needs to pay the factoring company anyhow if the whole invoices have been gathered.

Once you have selected a factoring firm, you must request a quote from them. If their price is reasonable, you can proceed with the further process. When selecting factoring option for financing your business, you must understand about two types of factoring-recourse and non-recourse factoring.

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In the recourse type, you need to sell your invoices to a factoring company with the agreement that you will collect all the unpaid invoices after the completion of the recourse period. The factor does not bear any risk of non-payment of the invoices and you are entirely responsible for unpaid accounts. More than 90% of factors prefer recourse type to prevent the potential risk of unpaid invoices.
Recourse type offers more advantages to the lenders since the lender can go after the borrower when the account debtors of the client default. The lenders have only less risk and the applicants have a huge risk of uncollected payments.

Recourse factoring type is a cheap and easily affordable option for you but you need to hold the additional risk of uncollected invoices.

Non-recourse factoring is considered as a secured debt of collateral loan. In non-recourse type, you want to sell your invoices to a factoring company who offer you required cash to cover the invoices and this type of funding is very useful to business firms that require money fast. In non-recourse type, you don’t hold the risk of unpaid invoices. The factoring company bears all the risk. The transaction cost of non-recourse factoring type is expensive since the lender bears the additional risk and if any liability then the lenders needs to pay them. Majority of factoring firms charge demands .5% – 1% more for non-recourse type.

If you do international sales, then you must choose a factoring firm that offers factoring service to international borrowers. The services offer by each factoring firm varies so you must verify the type of services offered by them before the selection process. Non-recourse type is the appealing approach for most borrowers since they don’t have the risk of loss due to unpaid invoices except the collateral they made on loan. Also, non-recourse factoring works as credit insurance for your company but credit insurance is only possible for large size firms.

How To Go Through Your Theory Test To Get The License


The theory test is an important part you need to cross before you receive intimation for your practical test. You will need to book your test appointment at your nearest test centre. To get the contact number for your centre please check the following link: – can search for more tips are

How to proceed

Book your test
Book the test at your nearest test centre. The centres will be given at The fee for online booking is £23. Make sure you have your provisional license number with you while booking. If you book using an unofficial site, you may end up paying more money. There is no guarantee that you may get the booking also is you move through unofficial sites. So it is advisable to book on You can also alter the dates on this.

Revise your portions
Make sure you read through the notes you have collected. The test will be online and you will need to be thorough in your knowledge. Unlike a written exam, you may find it confusing to skip difficult queries or keep them for the last to think and solve. It is better to complete each question before you move on to the next.

Practice session
You can have a 15 minute practice session before the actual one to get familiar with the system.

The Actual test
The test will have a multiple choice part. There will be 50 questions and you have to get 43 correctly to pass the exam. The total time allotted for this session is 57 minutes. So try not to waste time thinking unnecessarily.
There may be case study questions also where you will be given 5 queries based on a story which appears online at that time.

For each session, the necessary instructions will appear on screen.
There is an option to flag questions and come back to them later, however you have to make sure you use your time wisely if at all you are skipping questions. Do not keep all to the last and then leave the test incomplete.

After this portion, you will be given a three minute break. You can either take rest or watch a video on how the next part is going to be.
There is a hazard perception test following this break. If you do not want to take a break,proceed to the hazard perception test directly. Out of 75 points , you have to score a minimum of 44 points.

Receiving your result
At the end of your exam, you can wait for the result. It will be handed over to you at the end. If you pass, you will receive a letter with a pass certificate number on it. You would require this number for applying for your practical test, so make sure you don’t lose it. If somehow you do lose it, you can reapply to get the certificate through

Validity of this certificate is two years. So you need to proceed to your practical test within this time limit and pass it as well.