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Blanket inventory liens, trust receipts and warehousing

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Can you briefly discuss three types of lender control used in inventory financing?

The three types of lender control used in inventory financing are a.Blanket inventory lien - general claim against inventory or collateral. No specific items are marked or designated. b.Trust receipt - borrower holds the inventory in trust for the lender. Each item is marked and has a serial number. When the inventory is sold, the trust receipt is canceled and the funds go into the lender's account.c.Warehousing - the inventory is physically identified, segregated, and stored under the direction of an independent warehouse company that controls the movement of the goods. If done on the premises of the warehousing firm, it is termed public warehousing. An alternate arrangement is field warehousing whereby the same procedures are conducted on the borrower's property.


What factors determine the cost of bank financing?

Three major factors determine the cost of bank financing, the prime rate, the nominal rate, and the effective rate. Also, the creditworthiness of applicant is taken into account.


What are the three main decision areas in business finance?

The three main decision areas in business finance are:Investment decision,Financing decision and Dividend decision


What are the three components of a mortgage?

The three elements are 1) The asset that is which one to be mortgage 2) The lender who make the mortgage 3) The borrower who want the loan by mortgage this three are the basic components of mortgage loan.


How does a lender use a credit report?

A lender will request a credit report from one of three credit reporting bureaus. This report will give the lender an idea about how likely you are to repay a loan on time and in full. The better your credit report, the more likely you are to repay the loan in full on time and (in general) the lower an interest rate you will be offered.

Related Questions

Can you briefly discuss three types of lender control used in inventory financing?

The three types of lender control used in inventory financing are a.Blanket inventory lien - general claim against inventory or collateral. No specific items are marked or designated. b.Trust receipt - borrower holds the inventory in trust for the lender. Each item is marked and has a serial number. When the inventory is sold, the trust receipt is canceled and the funds go into the lender's account.c.Warehousing - the inventory is physically identified, segregated, and stored under the direction of an independent warehouse company that controls the movement of the goods. If done on the premises of the warehousing firm, it is termed public warehousing. An alternate arrangement is field warehousing whereby the same procedures are conducted on the borrower's property.


When can your car be repossed?

The most frequent cause of repossession is lack of payment on a note owed to a financing company or bank. The lender can repossess anytime after a payment is missed, but most won't start such proceeding until you've missed two or three payments. Always try to work with the lender before you get too far behind.


Does the statement of cash flows consist of three sections?

Yes it consists of three sections as follows:Cash flow from operating activitiesCash flow from investing activitiesCash flow from financing activities.Yes, it contains three sections. These are the Operating, Investing and Financing Activities. ^^


Manufacturing business three different inventory accounts?

1 - Raw material Inventory 2 - Work in process inventory 3 - Finished Goods inventory


How do you open the inventory in minecraft on iPhone?

Do you see the three white dots on the bottom of the screen? That is the inventory


What has Has three sections operating investing and financing in accounting?

Cash flow statement has these three sections which are :Cash flow from operating activitiescash flow from investing activitiescash flow from financing activities


Account receivable financing is based on What?

There are three major factors in accounts receivable financing. Receivables buyers look at the size of the accounts, buyers' credit history, and the age of the receivable.


What are the financing options available for Apple laptops?

There are multiple ways now available for financing an Apple laptop. The three ways offered are for consumers, for businesses, and for educational institutions.


What are three sources of financing for a health care organization?

Medicare, Medicaid and Private Insurance


What is Accounts receivable financing is based?

There are three major factors in accounts receivable financing. Receivables buyers look at the size of the accounts, buyers' credit history, and the age of the receivable.


What three forms does Equity financing come through?

selling stock,issuing bonds investment


The statement of cash flows is separately in three major sections They are as follows?

Operating, Investing, and Financing