Ultimo factoring (scheduled factoring)

The sale of receivables to a factoring company for a short period only. The purpose of the assignment is – to cover up high outstanding debts to the outside world – for example at the end of the quarter, on the balance sheet date, then also known as New Year’s Eve cleaning – and – to show a higher equity ratio by paying off debts with the liquidity transferred by the factoring company. In this way, it may be possible to achieve a better rating and thus more favorable credit terms with a bank. Of course, banks now also examine a customer’s documents with regard to such transactions when checking creditworthiness (scoring). – See disclosures, veiled, accounting cosmetics, accounting, creative, accounting, manipulative, factoring, plain text, crystallization, factual design, consistency, transparency, loss camouflage, materiality, reliability, fitness for purpose.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/