ZIMSEC O Level Commerce Notes: International trade: Factors
- is a mercantile fiduciary who receives and sells goods on commission.
- The commission is called a factorage.
- Possess the goods they sell.
- Sell goods in their own names.
- Do not disclose their principal.
- Collect goods for sale.
- Deliver goods to their customers.
- Have insurable interest on the goods they sell.
- May sell on credit.
- Provide warehousing and equipment for handling goods.
- Collect and forward payments to their principals less their commission.
- Most factors are found in the textile industry although they are also found in other industries.
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