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Change of Mode of Payment - Essay Example

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In the paper “Change of Mode of Payment” the author gives the notice to the employees that paper checks will no longer be used as a mode of payment but direct deposits into employee accounts. This was decided after consideration about costs of payment methods by the HR…
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Change of Mode of Payment

Download file to see previous pages... 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. ...Download file to see next pagesRead More
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