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WorksheetsFIN370 4.3: Specialized Financial Services
Total questions: 5
Worksheet time: 3mins
What is factoring?
The purchase of account payable by third party which provide immediate cash flow
The purchase of account receivable by third party which provide immediate cash flow
A type of financing where the company use its account payable as a collateral to obtain cash
A type of short-term financing where the company put an asset as a collateral
Which of the following is NOT true about hire purchase
It is a type financing services that allow an individual to purchase a house
The buyer rent the item purchased under hire purchase agreement until all the installment has been fully made.
It is a type of financing that usually used to purchase machine, equipment and vehicle
The borrower will select the item to be purchased before submitting the application for the hire purchase
Which of the following is the reason why people choose leasing service?
Low interest rate
improving cash flow
easier to obtain because it does not require a large loan or down payment
Choose the most correct statement about bridging loan
It is a type of loan used to purchase machinery
It is a long-term loan to purchase a new property
Commonly used to finance the purchase of a new house before the selling of an existing property.
It will take some time for the buyer to receive the fund once the application has been approved.
Which of the following statements best describe end financing?
End financing is a long-term loan just like a housing loan
end financing can be used to purchase a new house
end financing only available to conventional banking
End financing can be use to purchase a partially-financed house
