Public Administration - Municipal ACC106 Chapter Notes - Chapter 8.3: Eurodollar, Promissory Note, Commercial Paper

• School: Seneca College
• Department: Public Administration - Municipal
• Course: Public Administration - Municipal ACC106
• Professor: Riggs

Document Summary

Offered by the buyer to supplier usually 60 to 180 days supplier waits or can sell the credit note to the bank or on. A short-term unsecured promissory note in minimum units of. Sold (at a discount) by finance companies, other large. Total amount of commercial paper outstanding has increased greatly in recent years. To finance goods in transit (particularly imports) Loans from foreign banks denominated in u. s. dollars are called eurodollar loans. Foreign interest rates may be more favorable. Pledging accounts receivable as collateral for a loan. An outright sale (factoring) of receivables to a factoring company. Asset-backed securities: sale of receivables by large corporations in public offerings. Tends to be a relatively expensive source of financing. Offered by a financial institution usually a finance company. For a fee this company (the factor) takes over the invoicing and accounts receivable collection for a business fee usually 2% to. Factor provides an advance of up to 80%