短期筹资（PPT40）(1)

11-1Short-TermFinancing11-2Short-TermFinancingSpontaneousFinancingNegotiatedFinancingFactoringAccountsReceivableCompositionofShort-TermFinancing11-3SpontaneousFinancingAccountsPayable(TradeCreditfromSuppliers)AccruedExpensesTypesofspontaneousfinancing11-4SpontaneousFinancingOpenAccounts:thesellershipsgoodstothebuyerwithaninvoicespecifyinggoodsshipped,totalamountdue,andtermsofthesale.NotesPayable:thebuyersignsanotethatevidencesadebttotheseller.TradeCredit--creditgrantedfromonebusinesstoanother.Examplesoftradecreditare:11-5SpontaneousFinancingDraft--Asigned,writtenorderbywhichthefirstparty(drawer)instructsasecondparty(drawee)topayaspecifiedamountofmoneytoathirdparty(payee).Thedrawerandpayeeareoftenoneandthesame.TradeAcceptances:thesellerdrawsadraftonthebuyerthatordersthebuyertopaythedraftatsomefuturetimeperiod.11-6TermsoftheSaleNetPeriod-NoCashDiscount--whencreditisextended,thesellerspecifiestheperiodoftimeallowedforpayment.“Net30”impliesfullpaymentin30daysfromtheinvoicedate.CODandCBD-NoTradeCredit:thebuyerpayscashondeliveryorcashbeforedelivery.Thisreducestheseller’sriskunderCODtothebuyerrefusingtheshipmentoreliminatesitcompletelyforCBD.11-7TermsoftheSaleSeasonalDating--credittermsthatencouragethebuyerofseasonalproductstotakedeliverybeforethepeaksalesperiodandtodeferpaymentuntilafterthepeaksalesperiod.NetPeriod-CashDiscount--whencreditisextended,thesellerspecifiestheperiodoftimeallowedforpaymentandoffersacashdiscountifpaidintheearlypartoftheperiod.“2/10,net30”impliesfullpaymentwithin30daysfromtheinvoicedatelessa2%discountifpaidwithin10days.11-8TradeCreditasaMeansofFinancing$1,000x30days=$30,000accountbalanceWhathappenstoaccountspayableifafirmpurchases$1,000/dayat“net30”?Whathappenstoaccountspayableifafirmpurchases$1,500/dayat“net30”?$1,500x30days=$45,000accountbalanceA$15,000increasefromoperations!11-9CosttoForgoaDiscountApproximateannualinterestcost=%discount365days(100%-%discount)(paymentdate-discountperiod)Whatistheapproximateannualcosttoforgothecashdiscountof“2/10,net30”afterthefirsttendays?X11-10CosttoForgoaDiscountApproximateannualinterestcost=2%365days(100%-2%)(30days-10days)=(2/98)x(365/20)=37.2%Whatistheapproximateannualcosttoforgothecashdiscountof“2/10,net30,”andpayattheendofthecreditperiod?X11-11PaymentDate*Annualrateofinterest11744.9%2074.53037.26014.9909.3*daysfrominvoicedateCosttoForgoaDiscountTheapproximateinterestcostoveravarietyofpaymentdecisionsfor“2/10,net____.”11-12S-t-r-e-t-c-h-i-n-gAccountPayablesCostofthecashdiscount(ifany)forgoneLatepaymentpenaltiesorinterestDeteriorationincreditratingPostponingpaymentbeyondtheendofthenetperiodisknownas“stretchingaccountspayable”or“leaningonthetrade.”Possiblecostsof“stretchingaccountspayable”11-13AdvantagesofTradeCreditConvenienceandavailabilityoftradecreditGreaterflexibilityasameansoffinancingComparecostsofforgoingapossiblecashdiscountagainsttheadvantagesoftradecredit.11-14WhoBearstheCostofFundsforTradeCredit?Buyers--whencostscanbefullypassedonthroughhigherpricestothebuyerbytheseller.Both--whencostscanpartiallybepassedontobuyersbysellers.Suppliers--whentradecostscannotbepassedontobuyersbecauseofpricecompetitionanddemand.11-15AccruedExpensesWages--Benefitsaccruevianodirectcashcosts,butcostscandevelopbyreducedemployeemoraleandefficiency.Taxes--Benefitsaccrueuntiltheduedate,butcostsofpenaltiesandinterestbeyondtheduedatereducethebenefits.AccruedExpenses--Amountsowedbutnotyetpaidforwages,taxes,interest,anddividends.Theaccruedexpensesaccountisashort-termliability.11-16SpontaneousFinancingMoneyMarketCreditCommercialPaperBankers’AcceptancesUnsecuredLoansLineofCreditRevolvingCreditAgreementTransactionLoanTypesofnegotiatedfinancing:11-17“Stand-Alone”CommercialPaperCommercialpapermarketiscomposedofthe(1)dealerand(2)direct-placementmarkets.Advantage:Cheaperthanashort-termbusinessloanfromacommercialbank.Dealersrequirealineofcredittoensurethatthecommercialpaperispaidoff.CommercialPaper--Short-term,unsecuredpromissorynotes,generallyissuedbylargecorporations(unsecuredcorporateIOUs).11-18“Bank-Supported”CommercialPaperLetterofcredit(L/C)--Apromisefromathirdparty(usuallyabank)forpaymentintheeventthatcertainconditionsaremet.Itisfrequentlyusedtoguaranteepaymentofanobligation.Bestforlesser-knownfirmstoaccesslowercostfunds.Abankprovidesaletterofcredit,forafee,guaranteeingtheinvestorthatthecompany’sobligationwillbepaid.11-19Bankers’AcceptancesUsedtofacilitateforeigntradeortheshipmentofcertainmarketablegoods.Liquidmarketprovidesratessimilartocommercialpaperrates.Bankers’Acceptances--Short-termpromissorytradenotesforwhichabank(byhaving“accepted”them)promisestopaytheholderthefaceamountatmaturity.11-20Short-TermBusinessLoansSecuredLoans--Aformofdebtformoneyborrowedinwhichspecificassetshavebeenpledgedtoguaranteepayment.UnsecuredLoans--Aformofdebtformoneyborrowedthatisnotbackedbythepledgeofspecificassets.11-21UnsecuredLoansOne-yearlimitthatisreviewedpriortorenewaltodetermineifconditionsnecessitateachange.Creditlineisbasedonthebank’sasses