Monday, July 22, 2013

Formalizing Trade Credit as a Source Of Funds

An article (http://e.nikkei.com/e/ac/tnks/Nni20130722D2207A16.htm) from Nikkei.com on the practice in Japan:

TOKYO (Nikkei)--Softbank Corp. (9984) plans to raise about 350 billion yen this fiscal year through the sale of accounts receivable, roughly 10% more than last fiscal year.

With smartphones like Apple Inc.'s iPhone flying off the shelves, the telecommunications group will apply the funds to stocking new handsets.

With today’s exchange rate, 350 billion yen is about 3.5 billion dollars.