Using inventory for collateral for short-term loans

Assignment Help Financial Management

Reference no: EM132051201

1. A firm’s policy for offering credit to its customers includes:

a. credit terms and credit standards

b. factoring

c. the interest earned on investments in accounts receivable

d. management of accounts payable

2. Which of the following is a major problem with using inventory for collateral for short-term loans?

a. higher costs than unsecured loans

b. lenders prefer not to make secured loans

c. factoring

d. valuing the inventory

Reference no: EM132051201

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