March 31, 2009
This type of credit exists when one firm provides goods or services to a customer with an agreement to bill them later, or receive a shipment or service from a supplier under an agreement to pay them later. It can be viewed as an essential element of capitalization in an operating business because it can reduce the required capital investment to operate the business if it is managed properly. Trade credit is the largest use of capital for a majority of business to business (B2B) sellers in the United States and is a critical source of capital for a majority of all businesses.
There are many forms of trade credit in common use. Various industries use various specialized forms. They all have, in common, the collaboration of businesses to make efficient use of capital to accomplish various business objectives.
For many borrowers in the developing world, trade credit serves as a valuable source of alternative data for personal and small business loans. For example, Wal-Mart, the largest retailer in the world, has used trade credit as a larger source of capital than bank borrowings; trade credit for Wal-Mart is 8 times the amount of capital invested by shareholders.
January 21, 2009
Fair and Accurate Credit Transactions Act
The Fair and Accurate Credit Transactions Act of 2003 (FACT Act or FACTA, Pub. L. 108- 159) is a United States federal law, passed by the United States Congress on November 22, 2003, and signed by President George W. Bush on December 4, 2003, as an amendment to the Fair Credit Reporting Act. The act allows consumers to request and obtain a free credit report once every twelve months from each of the three nationwide consumer credit reporting companies (Equifax, Experian and Trans Union).
In cooperation with the Federal Trade Commission, the three major credit reporting agencies set up the website, to provide free access to annual credit reports.
The act also contains provisions to help reduce identity theft, such as the ability for individuals to place alerts on their credit histories if identity theft is suspected, or if deploying overseas in the military, thereby making fraudulent applications for credit more difficult. Further, it requires secure disposal of consumer information.
January 7, 2009
In the term of finance a debt security is know as bond, in this authorized person owes the holders a debt and which depend on the term of the bond, and which is obliged to pay interest or repay the principal at a later date means termed maturity.
Bonds and stock are both securities, but the major difference between the two is that stock-holders are the owners of the company, whereas bond-holders are lenders to the issuer.
Thus one can also say that the bond is a loan in which the issuer is the borrower, the bond holder is the lender, and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investment, or, in the case of government bonds, to finance current expenditure
September 26, 2008
In year 2003 I have completed my graduation, I became very interested in personal finance and investment. My dad had brought me up with a very strong respect for money in general and I learned a lot about avoiding frivolous spending, saving and debt while growing up that’s why I thought to start money matter.
September 26, 2008
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