Factoring

The company’s credit terms are 60-day, but it needs to pay its purchases within 30 days after purchase. Factoring would provide a short-term solution to reduce the gap between average collection and payment periods.

Research two (2) manufacturing or two (2) service companies that manage inventory and complete this assignment.

Product market is a mechanism that allows people to easily buy and sell products. The interaction between product and factor markets involves the principle of derived demand. Derived demand refers to the demand for productive resources, which is derived from the demand for final goods and services or output. Firms obtain the inputs or factors of production in the factors markets. The goods are sold in the products markets. In most respects these markets are the same. Price is determined by the interaction of supply and demand, firm's attempt to maximize profits, factors can influence and change the equilibrium price and quantities bought and sold and the laws of supply and demand hold. Consumers (households), in pursuit of their self-interest, have the incentive to look for lower prices. An incentive is the hope of reward or fear of punishment that encourages a person to behave in a certain way. Free market offer a wider variety of goods and services, and consumers in essence decide what gets produced which is called consumer sovereignty.

In Forward integration involves company to develop strategy to control the firm product distribution either through distribution centers or retailers. It is a necessary action when companies have potential benefits from handling, shipping of their own products directly to customers, or the retail selling their own products in brand stores.

Speidel, R. E., Summers, R. S., & White, J. J. (1993). Sales and secured transactions: Teaching materials. St. Paul, Minn: West Pub.

| In 2001 the Center for Medicare and Medicaid took charge of the Health Care Financing Administration. A person can go on with SSI for 2 years if he/she fails to meet the requirements for Medicare for the time being. The person should be eligible for Social Security Disability in this case. For some particular disease Medicare may be offered without any delay

The entries used to record the disposition when the receivables are sold to a factor often detail the cash received plus the service charge. The company can then balance their receivables account. When a credit card company records a credit card

At the time of the sale, the company receives immediate payment for the stated principal amount of the installment contract and a portion of the finance participation resulting from the interest rate differential. The remainder of the interest rate differential is retained by the financial institution as a security against credit losses and is paid to the company in proportion to customer payments received by the financial institution.

Fukuyama’s (2002) principal point in explaining his view of Factor X is: “…we are complex wholes rather than the sum of simple parts, then it is clear that there is no simple answer to the question, What is Factor X (p. 159)? Instead of one defining element, he believed that Factor X is made up of multiple aspects that make humans unique and create the basic human dignity that allows for a minimal level of respect. He also discusses how biotechnology could disrupt human nature and create political unrest between the left and right. Extreme advances in biotechnology could create a divide in the human race between the ”GenRich“ and the ”GenPoor“ where the GenRich would have highly modified genes whereas the GenPoor are without these

"Factors of production" simply is a term used by economists to describe all that goes into making a consumer product. This would include all labor, land, capital, and time needed to make a product plus all of what it takes to distribute it. In the general sense, "factors of production" are never weak, though it is possible for specific factors employed to make specific products to be in short supply. In such circumstances, producers probably would try to offer a substitute for which critical factors were more available. Such products probably would not be as good as the product they replaced, but the economy as a whole still would continue to grow, especially in the face of continued saving and investment.

Factoring, a short-term source of borrowing for a business. IT enables a business to raise the funds immediately by selling accounts receivable at a discount to a firm that specialises in collecting accounts recievable (a finance or even factoring buiness). Factoring is an important source of short-term finance because the business will recieve up to 90% of the totaly amount of

According to the European Credit Research Institute, the term ‘peer-to-peer’ (P2P) describes the interaction between two parties without the need for a central intermediary. The term originated in the field of computer networking, to describe a network where any one computer can act as either a client or a server to other computers on the network without having to connect to a centralised server (A. Milne and P. Parboteeah, 2016). Peer-to-peer lending is used to describe online marketplaces where lenders (also referred interchangeably as investors) can lend to individuals or small businesses (A. Mateescu, 2015). Peer-to-peer lending activities have grown exponentially since the concept launched. For instance, from 2015 to 2016, P2P lending activities went up by 39%, from £2.3bn to £3.2bn (Bondmason, 2017).

Trade credit is the practice of purchasing goods now and paying for them later. Trade credit is widely used and “is the least expensive and most convenient form of short-term financing” (McHugh, McHugh & Nickels, 1999, p. 573). When a company purchases goods on credit an invoice is received outlining the terms of repayment. An invoice contains terms such as 2/10, net 30. The total bill is due in 30 days, but the supplier has extended a discount if the amount is paid in full within 10 days. Finance managers use the information on the invoice to perform an analysis to find out if the discount is worth paying the invoice in advance or if there is opportunity for more earning potential if invested elsewhere.

Factors that happen in the external environment are known as external factors or influences. These will affect the main internal functions of the business and possibly the objectives of the business and its strategies. The main factor that affects most business is the degree of competition - how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are:

In the partial fulfillment of the requirement of Master of Business Administration (M.B.A.) Program (2002-2004) Hemchandracharya North Gujarat University, Patan.