List and describe three basic types of secured inventory loans. What are the advantages and disadvantages of each type of loan?
What will be an ideal response?
The three types discussed are blanket lien, trust receipts, and field warehouse financing. The blanket lien is certainly the easiest for the firm since the lender just places a lien against all the firm's inventory and the borrower typically does not have to give the lender precise lists of what constitutes inventory on a regular basis. Trust receipt financing requires the borrower and lender to specify the exact inventory that backs up each cash advance. This can be a time-consuming type of financing for the firm but is used for large, easily identifiable inventory items such as vehicles and boats. Field warehouse financing requires an independent company supervise and frequently store the collateral for the lender.
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Liquidity relates to a company's ability to do which of the following?
a. The ability to pay its financial obligations as they become due b. The ability to stay in business over the long run c. The ability to pay dividends to its stockholders d. The ability to collect the amount their customers owe the company
What does cause-related marketing offer public relations professionals that other items in the marketing mix don't usually offer? Provide some examples of cause-related marketing
What will be an ideal response?
What is liquidity risk?
A) A problem that arises when a firm runs short of cash. B) The risk of asset prices rising too high. C) The chance that the borrower will fail to repay a loan. D) The risk associated with longer-term contracts.
_______________paragraphs examine two or more subjects’ similarities, differences, or both.
a. cause/effect b. list c. comparison/contrast d. sequence