Factoring: the way to cash
Article Abstract:
Two ways of helping cashflow problems of small and medium-sized enterprises (SMEs) are invoice discounting and factoring. Invoice discounting is offered in order to receive payment on time and factoring companies lend monies against book debts, collecting debts on behalf of their client companies. Factor companies will allow up to 80% payment of the value of the debt, charging interest on this sum, usually 2% or 3% above bank base rates. A service charge is also made on turnover, up to 3%. Factor companies claim their service is cheaper than a bank loan.
Publication Name: The Director
Subject: Business, international
ISSN: 0012-3242
Year: 1997
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Fund managers under fire
Article Abstract:
Fund managers are often blamed when things go wrong, however, it is suggested that ineffective company directors are as much to blame. Fund managers are criticised for the large salaries they earn but this can be justified by the large profits they generate. Clients who wish to avoid high management fees can choose "passive" management, which uses a computer to track the market index. "Passive" management has increased by 300% in the US in two years. The UK Pensions Act will affect the way trustees and fund managers behave and make them more accountable.
Publication Name: The Director
Subject: Business, international
ISSN: 0012-3242
Year: 1997
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Goodbye lending...Stung by small business losses, the banks are moving to pastures new. One of the beneficiaries is the long-maligned factoring industry. So what should you know about this evilving financial sector?
Article Abstract:
A survey showed that small businesses are often turning to factoring services to finance their businesses. However the potential market for factoring is thought to be several times its current size and growth is expected to continue. Factoring is growing because of the general rise in the number of small businesses, increased cash flow problems, bad debt and problems in raising alternative sources of finance.
Publication Name: The Director
Subject: Business, international
ISSN: 0012-3242
Year: 1995
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