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NOT NULL CONSTRAINT -    Ensures that a column cannot have a null value. DEFAULT CONSTRAINT -    Provides a default value for a column when none is specified  UNIQUE CONSTRAINT -   Ensures that all values in columns are different  CHECK CONSTRAINT -   Makes sure that all values in a column satisfy certain criteria  PRIMARY KEY CONSTRAINT -   Used to uniquely identify a row in the table  FOREIGN KEY CONSTRAINT -   Used to ensure referential integrity of the data  Primary Key - is used uniquely to identify each row in a table . It can consist of one or more columns on a table . When Multiple columns are used on a table it is called composite key.  Foreign Key - Foreign key is a column or columns that references a column most often primary key of another table . The purpose of foreign key is to maintain referential integrity of the data. Pg admin  Data base - training - right click on training - query click  Always add semi colen to run the query  Int - integer  varchar - variable charact
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Factoring concept with types

 #Procedure of Factoring 

1. After selling goods to the buyer on credit and prepares a bill and raises the invoice .

2. The factors pays at least 80% of the invoice to the seller and prepares the statement of accounts for the buyer .

3. The factor sends the statement of accounts the buyer.

4. The buyer settles the transaction with the factor 

5. The factor after paying the balance amount to the seller obtains the commission.

#Functions of Factor 

1. Book debts / Debtors

2. Receivable management 

3. Sales ledger administration - Maintaining ledger 

4. Bad debts - if there is non recourse then only bad debt responsibility will be taken by Factor

5. Information Services - Provide potential buyer also by the factor , increasing credit period then we can actually increase the sale


#Types of Factoring 

1. Recourse and non Recourse - 

Recourse - factor is not liable for any bad debt risk full risk is borne by seller .Liability of seller.

Non Recourse - Client gets the credit protection  , non payment or loss is borne by the factor.It has higher commission .It is dealt commission.Liability of factor.

2. Maturity / Collection Factoring - Payment of the accounts receivable on the maturity date , he manages all the receivable , you don't have to call the customer. Except for advanced money all other services are provided by factor.

3. Advance Factoring - The factor immediately give the advance money to seller on receiving invoice . 80-90% money given immediately .

4. Disclosed and Undisclosed - 

Disclosed- Factor name is disclosed in invoice 

Undisclosed - Factor name is not disclosed in invoice.

5. Domestic - Invoice raised within India.

6. Invoice - Seller has to manage the receivables , the factor will only provide the payments

7. Cross Border - There are co- parties involved .Exporter, Export factor and Importer, Import factor are there. Also known as 2 factor system . It is outside the country.

For example- I have sold goods to B in US, I will appoint factor in India and B will appoint factor in US . Factoring work has to only coordinate with my Indian Factor. Currency conversion is done by the factor.

8. Reverse - Buyer will give the invoice received by seller to his banker , then that bank will give money to the seller. The difference is Buyer has appointed the factor to pay the seller . It is initiated by buyer instead of seller.




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