Global Corporate Finance

By: EconomyWatch   Date: 30 June 2010

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Global corporate finance deals with global cross border funding of various corporations. Global Corporate Finance follows a global lending program by taking into consideration the tax and foreign exchanges consequences.

The services provided by the global corporate finance are as follows:

Payables Financing

Companies, which are availing the global corporate finance, enjoy early payment discounts from customers. The financial institutions that provide the global corporate finance open an account with each of the suppliers giving them the option of receiving payments as soon as possible. As time comes the suppliers get paid through their account.

Inventory Financing

In order to maintain a regular flow of cash, 100% inventory financing is provided to the companies availing the this service. The consumers who opt for inventory financing enjoy the following benefits:

  • Increased credit capacity
  • Free financing for the sponsored suppliers
  • Simple and common repayment dates each month
  • 100% advance rates
  • Online account management
  • Match repayment terms to accounts receivable terms have flexible structures
  • Accelerated cash flow
  • Maximized business volumes
  • Improved days payables outstanding

Receivables financing

The most relevant part of a growing company is cost management of higher accounts receivable and inventory level. The asset based finance solutions offered under the global corporate finance provide working capital for the growth of the company. The revolving lines of credit helps to obtain cash advances by using the accounts receivable and inventory. Under this finances are provided by following 3 steps:

  • Checking the eligibility of clients to receive it
  • Purchasing the receivables at a discount or for cash
  • Collecting the full invoice amount from the customers over time.

The benefits attached with receivables financing are:

  • Acceleration of cash flow
  • Mitigation of collection risk
  • Enhancing productivity
  • Outsourcing collection activity
  • Optimization of asset potential.

Term loans

Term loan financing is generally coupled with other commercial financing offering. This sort of financing is made to help in the purchase of equipments and other important assets. The benefits of term loans include:

  • Additional source of business finance
  • The spread of the cost of assets and infrastructure investments over time.

Flexible Credit Scheme

it provides flexible credit to the customers. The advantages of a flexible credit regime is:

  • No interest payments are required for the financing periods 30,45 or 60 days
  • The principle can be repaid at the end of the free period.




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