As discussed in my earlier articles on Sale & Leaseback or REIT, there are many reasons for such disposal which includes
• focusing on its core competencies;
• cash strap hence getting cheaper & larger funding to provide for working capital
• improving fixed assets utilization;
• realized gain from disposal of fixed assets;
• disposal of non-core fixed assets;
• […]

Besides, Trust Receipt Facility, we can also avail ourselves with another form of trade financing facility which is called Bankers’ Acceptance Facility or in short called B/A facility.
Vide this Bankers’ Acceptance facility, the bank can finance us for imports of goods. Simply, it is a form of trade financing facility where we the buyer/importer customer […]

When we regularly import goods from overseas, we need to seek a more permanent form of import credit facility and Trust Receipt facility is one of them.
Trust receipt facility is simply one form of banking facility, our banker assists us to finance the import of goods for a certain fixed period of time. That period […]

Where your company is in a cash-scrapped situation or you are generating low return on assets due to holding on to idling or unproductive fixed assets or you want to have a lump sum cash to invest in other projects, it might be worthwhile to consider a financing technique called Sale and Leaseback.
The sale/leaseback is […]

In my earlier article on Overtrading where due to cash shortage, the company is unable to take advantage of suppliers’ discount by paying accounts promptly.
This so-called cost of cash inadequacy can be easily computed based on the approximate annual cost of not taking the cash discount from our suppliers.
The formula is as follows:
(% Cash Discount […]