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FRANKLY SPEAKING Posted 19 years ago
Business & Finance

Trade debtors as a source of cash

0One way of using Trade debtors as a source of cash is :02br
02br
00-Pledging the debts . The financial instituation selects the debts as a pledge against a loan of money to the business .01font01b00 02b01i00Usually the business collects the accounts and applies the money collected against the loan balance02i02font00 .02br
02br
00Does the montined sentence above means that : the business collects its debts and pay for the financial instituation as a partial payment ?02br
02br
00I want a Clear explanation if the answer is wrong ? 0-
  

Top answer

0Yes. For example, if Trade debtors are due to pay money to the business in say June, Aug and Sept. Then the money paid on those dates goes to the financial instituation as repayment of the loan until the loan has been repaid in full.

— Tidus

  • 0Yes.
  • For example, if Trade debtors are due to pay money to the business in say June, Aug and Sept.
  • Then the money paid on those dates goes to the financial instituation as repayment of the loan until the loan has been repaid in full.
  • 0-
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1 Answers
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0Yes. For example, if Trade debtors are due to pay money to the business in say June, Aug and Sept. Then the money paid on those dates goes to the financial instituation as repayment of the loan until the loan has been repaid in full. 0-
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