Corporate Banking Facilities and Financing Forms
Explore the process of inventory financing, supply chain finance examples, and insights into factoring to enhance your knowledge of corporate banking facilities and financing forms in the business world.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
Session-2 Corporate Banking Facilities and other Financing Forms
Example of Supply Chain Finance A typical extended payables transaction works as follows: Let s say the buyer, Company ABC, purchases goods from the seller, Supplier XYZ. Under traditional circumstances, Supplier XYZ ships the goods, then submits an invoice to Company ABC, which approves the payment on standard credit terms of 30 days. But if Supplier XYZ is in dire need of cash, it may request immediate payment, at a discount, from Company ABC's affiliated financial institution. If this is granted, that financial institution issues payment to Supplier XYZ, and in turn, extends the payment period for Company ABC, for an additional further 30 days, for a total credit term of 60 days, rather than the 30 days mandated by Supplier XYZ.
Factoring Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable to a third party at a discount. A business will sometimes factor its receivable assets to meet its present and immediate cash needs.
