Rehypothecation is the practice by banks and brokers of using, for their own purposes, assets that have been posted as collateral by their clients. Clients who permit rehypothecation of their…
The Quick Ratio is a financial ratio used to gauge a company’s liquidity. The Quick Ratio is also known as the Acid Test. The Quick Ratio compares the total amount…
Purchase Order Financing is a funding option for businesses that need cash to fill single or multiple customer orders. In many businesses, cash flow problems exist and there will be…
A Purchase Order (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, quality, timeliness and agreed to price for products or services the seller…
The Process of Factoring is: Complete the factoring application and submit with the required documents (A/R aging, sample invoices, Vendor Agreements & Purchase Orders) Receive a written proposal outlining the…
The Prime Rate is the interest rate that commercial banks charge their most credit-worthy customers, which are typically corporations. On December 21,2015 it was 3.5% in the US.
The Property, Plant, and Equipment (PP& E) is part of a company’s Balance Sheet representing long-term assets that are crucial for daily operation. PP& E includes a company’s property, machinery,…