Factoring Agreements: Understanding the Process and Benefits
A factoring agreement can be defined as an agreement between a business (the client) and a specialized financial entity known as a factor or factoring company. In this agreement, the business agrees to cede a set of claims it holds over its customers to the factoring company. The factoring company, in turn, is obligated to provide the business with a range of services closely related to the assignment and remuneration of these claims.
Services Provided by Factoring Companies
Factoring companies offer
Read MoreSpanish Bank Restructuring & Financial Market History
Spanish Restructuring
The Spanish government, under Zapatero, created a bank restructuring fund called FROB (Fondo de Reestructuración Ordenada Bancaria) to recapitalize the banks. FROB lent 14 billion euros to the banks until 2012, when the European Union rescued the Spanish banks.
Mergers of the Savings Banks
Mergers occurred to reduce excess capacity and strengthen their financial position. The most important merger involved Caja Madrid and six other smaller savings banks, forming Bankia. Bankia
Read MoreUnderstanding Bank Loans: Types and Procedures
Administrative Procedures: Steps to Get Funding
Having the need to secure financing (an investment, afford to spend on a specific date, or cannot meet payments) – Apply for funding (the bank gets personal and financial information and client on the operation you want to do. And the customer is informed of the operation + convenient for him). The bank examines the customer using:
- CIRBE (reported debts of the client in other banks)
- RAI (reports of default effects)
- Registration of Property (property you
Business Management: Finance, Operations & Marketing
Business Management: Key Areas
Supply Area and Inventory Costs
The supply area is part of logistics. Activities include the pre-production process: selecting, buying, and storing raw materials. This is called provisioning.
Inventory costs include: storage costs (costs of storing goods), administrative and marketing costs, transportation costs, and costs from production interruptions.
Just in Time (JIT) Method
The Just in Time (JIT) method, a Japanese organizational system, increases productivity and
Read MoreSenior Public Management and Comptroller General in Chile
Senior Public Management in Chile
If a selected manager resigns within the first two months, the competent authority may appoint another member of the payroll. For all intents and purposes, senior management officials are the sole public confidence of the appointing authority and should be considered as such in terms of removal. Even with good grades, removal can occur.
When the termination of employment occurs due to the resignation of a senior executive, they are entitled to compensation under the
Read MoreBonus Shares and Dividend Policies: Impact on Companies
Advantages to the Company [Issue of Bonus Shares]
1. It makes available capital to carry a larger and more profitable business.
2. It is felt that financing helps the company to get rid of market influences.
3. When a company pays a bonus to its shareholders in the value of shares and not in cash, its liquid resources are maintained and the working capital of the company is not affected.
4. It enables the company to make use of its profit on a permanent basis and increases the creditworthiness of the
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