what is difeerence between factoring and leasing?




Answers were Sorted based on User's Feedback



Answer / surya

Factoring means we are surrendering our debtors to a third
party for some immediate realization of money. The factoring
agency will take care about the realization of debtors. But
immediately we(company) will receive certain amount(not full
amount of debtors) against the debtors.



Where as leasing can be done against the assets. There are 2
types of lease. Operating lease and finance lease.

Is This Answer Correct ?    31 Yes 6 No

Answer / nitin

Factoring means give liquid assets - receivables - of a
compasny to a financial institution for maintaining on
proper way of collection and maintain good outstanding
position.

and Leasing to give a fixed assets to a leasee company for
using it for a pre decided period.

Is This Answer Correct ?    14 Yes 2 No

Answer / anil

factoring is a service
leasing is a contract

Is This Answer Correct ?    8 Yes 2 No




Answer / kiran

in factoring liquid assets are traded ..
in leasing fixed assets are traded..

Is This Answer Correct ?    0 Yes 0 No

Answer / gullfam786

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Is This Answer Correct ?    5 Yes 14 No

Answer / gullfam786

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Is This Answer Correct ?    2 Yes 22 No

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