WRITTEN REPORT IN FINANCE 2

Punzalan, Joyce Ann M
Prof. Ian Tianero
BSBA-Management

SPECIAL CREDIT FROM SUPPLIERS
There are some manufacturing companies that obtain assistance from their customers in the form of payments in advance for goods ordered. There are some cases that suppliers grant long terms of payments on goods that they delivered to their customers. There are privilege specially to the customers who will purchase more goods on them, it is also a competition to those manufacturing company which have the same product. Long terms of payment on goods delivered can be a device to increase the volume of sales of the manufacturing company.
TRADE ACCEPTANCE
“A written order for a sum of money originating with a creditor and naming a debtor, customarily forwarded to a bank for a collection”
It is a time draft drawn in the seller of goods on a buyer, in a trade acceptance the buyer is the acceptor. It is a bill of exchange for the amount of a purchase drawn by the seller on the purchaser, bearing the purchaser signature and specifying time and place for payment. The promises of payment maybe for 30 to 60 90 day period.
If the acceptance is made by a finance company, then it is called a trade acceptance. An example would be a finance company affiliated with a manufacturing company that must make large purchases of parts, either domestically or overseas. Since a finance company does not necessarily carry the same "comfort" weight as a bank, or in order to facilitate a series of payments and conditions, the acceptance may be backed by a Letter of credit issued by a bank.
BANKER’S ACCEPTANCE
“One method of obtaining low cost current financing within the framework of the banking system is through the use of banker’s acceptance.” It “accepts” the draft and returns it to the seller, retaining the papers for whatever disposition has been agreed upon with