Project Description:

generating cash from receivables

the guide company requires additional cash for its business. guide has decided to use its accounts receivable to raise the additional cash as follows:

on june 30, 2013, guide assigned $200,000 of accounts receivable to cell finance company. guide received an advance from cell of 85% of the assigned accounts receivable, minus a commission on the advance of 3%. prior to december 31, 2013, guide collected $150,000 on the assigned accounts receivable and remitted $160,000 to cell, $10,000 of which represented interest on the advance from cell.

on december 1, 2013, guide sold $300,000 of accounts receivable to factoring company and received 80% of the value of the factored receivables. factoring company charged a 15% commission based on the gross amount of the factored receivables. the receivables were sold without recourse.

on december 29, 2013, guide received an advance of $100,000 from domestic bank by pledging $120,000 of guide's accounts receivable. guide's first payment to domestic is due on january 29, 2014.
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Price Type: Negotiable

Total Proposals: 22
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