What Two Types of Financing Agreements Are Available to Companies

question 145

Essay

What two types of financing agreements are available to companies who wish to obtain cash from their accounts receivables? Why is it important to note whether or not the receivables are transferred with or without recourse?

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Definitions:

Americas

A collective term for the continents of North America and South America, including all its countries and regions.

Negros De Ganhos

A term from Brazilian history referring to enslaved Africans who were allowed to work for their own earnings, albeit under conditions set by slaveholders.

Roman Catholicism

The largest branch of Christianity, led by the Pope, characterized by its liturgical traditions and doctrines like the sacraments and the teaching authority of the Church.

Brazilian Interior

Refers to the inner, often less developed and less populated regions of Brazil, contrasted with the coastal areas where the majority of the population lives.