In international factoring, the exporter will hire the factor who works for a factoring firm. The factor is responsible for all the cash flows. The factor is the guarantee for the import price of goods to the exporter.Functions of international factoring are as follows −Factor hire a local person to ... Read More

Non – recourse factoring is an agreement made between factor and the client in which, there is no absorb for unpaid invoices.Higher fees.Lower liability.Unpaid invoices are not covered.Rate ranges from 3-5 %.A non – recourse factoring does not offer you protection, if there exists any of the below mentioned conditions ... Read More

Recourse factoring is an agreement between client and factor in which, client had to buy back unpaid bills receivables from factor. In case of default payers factor can claim their money, agreement will specify in how many days the payment should refund in advance. Whether money will refund or not, ... Read More

Factoring is a financial arrangement between the company and financial institute, in which company get money in form of advance in return for receivables from financial institution. In this, company is called client and financial institution is called factor. Factoring agreements involves the factor, the client and a customer.Functions of ... Read More

Venture capital is the capital supplied to start ups or any small business by the investors in the form of share capital believing they have long term growth in their business.Though, it involves risk in investing to the investors, they invest by seeing attractive payoff. The investors are capitalists. In ... Read More

Leverage lease is an agreement between lessor and lender. This agreement tell that lessor purchases the asset from the lender by acquiring funds from third part or from taking loan from financial institutions.In this, the lessor transfers lease rents to financial institution or to the third party. The financial institutions ... Read More

Operating leverage is ratio between company’s fixed costs to its variable cost. It tells about how company is using its fixed cost to regenerates its revenue. If the fixed costs are high, company generates high leverage ratio which leads to high profits.If the fixed costs are low, company will generate ... Read More

The main objective of leverage is the maximisation of wealth of the shareholders. Financial leverage refers to buying the additional assets which company uses as its debt. The more the debt, more the leverage of that company.However, more leverage will increase risk of failure. It is also called as trading ... Read More

In leasing, the company which leases is called lessor and the user is called lessee. The agreement made between lessor and lessee is called leasing. Different types of leasing are operating lease, financial lease, sale and lease back and leverage lease.Financial lease is an agreement in which lessor receives lease ... Read More

Below are the basic stock trading terms −Buy − Buy shares in company.Sell − Selling of shares after meeting the target (personal) or to minimise loss.Ask − People are looking to sell their shares or looking get for their shares.Bid − Willing to pay for a stock.Ask – Bid spread ... Read More