Hi, i am taking a survey, is their a need for account recievable loans? For example a loan in the amount of 6 months of your credit card recievables?
2007-09-10 13:52:55 · 3 answers · asked by Lucky Chuck 3 in Business & Finance ➔ Credit
Using Account Recievables for collateral. For example, taking a loan out on 6 month average of your credit card recievables.
For businesses.
2007-09-10 14:03:19 · update #1
For accurate results you might want to do an actual survey of companies with AR assets. Otherwise you could just be getting opinions not based on "need."
If you just want an opinion, yes there is such a need. For example a company with an AR turnover of 45 days might have good enough cash flow to operate without such a loan. On the other hand, a company with a 90 day AR turnover might need to borrow against their AR assets in order to maintain sufficient cash flow to pay their Accounts Payable when due.
2007-09-10 15:06:59 · answer #1 · answered by Latigo 3 · 0⤊ 0⤋
A lot of small business who need faster cash flow use factoring companies. They sell the invoice for 75% or 80%. Then the client pays the full invoiced amount to the factoring company.
I hated when my vendors did that. I had to fill out a bunch of paperwork for my company's Payables department to redirect payments.
2007-09-10 22:50:53 · answer #2 · answered by bdancer222 7 · 0⤊ 0⤋
are you talking a loan that has a collateral or just a loan with no credit, i dotn understand your question.
2007-09-10 21:00:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋