Question 3ab
Marking Guide
(a) Reduction in trade receivables 1
Reduction in financing cost 1
Reduction in administration costs 1
Saving in bad debts 1
Increase in financing cost 1
Factor’s annual fee 1
Advice on acceptance of factor’s offer 1
–––
7
(b) Bank and other references 1
Credit rating 1
Other relevant discussion 1
–––
3