Change of Mode of Payment Essay Example | Topics and Well Written Essays - 250 words

Change of Mode of Payment - Essay Example All employees must get a voided check or routing number to HR by 24th of September 2014.Paperwork must strictly be completed by fax or in person. Emailing employee bank information will not be allowed at all. Kindly note that this communication must be adhered to by all employees with immediate effect. Thank you for your time, adherence and understanding. When a business makes a credit sale, payment is normally due within a pre-decided period of time, normally 30, 60 or 90 days. Usually, the seller would have to wait for a month or more to receive cash against the sale. But a business may have an immediate requirement for funds. In such a situation, a factor could buy the invoice and pay the seller immediately. In the normal course, the amount paid would be about 80% of the invoice value. Subsequently, on the due date, the factor would collect the entire amount from the buyer. At this point in time, the factor would pay the remaining 20% of the invoice value to the seller after deducting its charges.