The definition of Invoice financing Invoice financing also known as invoice discounting, is a form of short-term financing in which a company sells its accounts receivable (invoices) to a financial institution, such as a bank or a non-banking financial company (NBFC), at a discount. The financial institution advances a percentage of the invoice value to… Read More »
Debtors vs creditors Creditors and Debtors are two fundamental concepts in accounting, representing parties involved in a financial transaction. Debtors Debtors are parties who owe money to a business for goods or services purchased on credit. In other words, a debtor is a customer who… Read More »
Investor and a Creditor Difference Between Investor and Creditor Website Link Investor and a creditor: Investor and a creditor are both entities that provide capital to a company, but there are distinctions between the two: Nature of investment: An investor offers equity capital, meaning they acquire ownership in the company in exchange for their investment.… Read More »
write-off affect net income and net account receivable A write-off is an accounting entry made to remove an asset or liability from the balance sheet, typically because it has become worthless or is unlikely to be recovered. In the case of a write-off of accounts receivable, the impact on net income and net accounts… Read More »