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[Music] all right welcome to our receivable financing so nato page overview number civil financing so unknown receivable financing nato so in real life every day so in real life or in real business world there will be a time when the company needed a cash to pay its current obligations so company current obligations or current liabilities at um there are many ways now spending my grace no money or cash sa business world in antarctica i receivable financing there are many ways to raise money from our receivable so remember we have two kinds of receivables we have our trade receivables and our non-trade receivables young trade receivables finance indiana trading and financing at a non-trade advances to employees in the operating at ecuador so the only thing that we can't finance in the bank or other financial institution is young acting trade receivables our trade receivable is composed of our accounts receivable and our note receivable all right so i'm adding trade receivable is composed of our accounts receivable add-on add-in notes receivable there are three ways raise money or cash from our accounts receivable at isang weighs the notes receivable so there are three ways to raise money or cash from our accounts receivable and this are pledging assignments and factoring all right and one way some notes receivable and this is what we call discounting all right now what is this pledging and assignment pledging and assignments are similar they are both borrowing money from a bank or any other financial institutions so it was a pledging assignment [Applause] all right so what's the difference between this pledging and assignments supply chain collateral accounts receivable collateral specific accounts receivable all right all right so that's the difference of the pledging in the assignments [Applause] [Applause] assignments at pledging in a little bit here the other similarities in differences now on factoring under by your factoring factoring is a sale of your accounts receivable so an item sale of accounts receivable bini berta okay so factoring is a other way of raising money it's other way of raising cash parameters current obligations accounts receivable now there are two ways to sell your accounts receivable cash flow factoring and the other one is the factoring as a continuing agreement all right factoring as a continuing agreement in casual factory sopagus up and nothing factory nato's a separate video in detail on factoring a casual factory or a factory as a continuing agreement but let me give you an overview about this casual factoring is selling your account existing accounts receivable so it took existing accounts receivable more ebay beta this is a one-time transaction how do we account for casual factory pago usapa nothing yeah factory individual lecture nothing factoring as a continuing agreement is as the company generates an accounts receivable automatic been high factor in bank or your other financial institution all right that is factoring all right one way of raising money or cash using our notes receivable is what we call this counting okay discounting nato remember notes receivable c company notes receivables company kappa melo is a or a customer issues a promissory note to pay our company um a certain amount in a specified date so promissory note notes receivable this counting on ibxabihin endorse nothing it is other financial institutions endorsements all right so that will raise tire now money from this counting through endorsement all right nothing young back no promise sorry no in the indoors nothing coca no money or other financial institutions or another person all right so this counting maritime without recourse and with recourse all right anub ibik sabino without recourse at with records so without records capac endorsement nato non-companies a promissory note neon without recourse and ibxabiancy banco or young other financial institutions it don't promissory okay that's without recourse so kapag with recourse naman all right it don't see it or financial institution right maker so that is with records without requesting the predictive bank accidents company that he'll an endorsement i without recourse kapagang endorsement i will recourse them see company all right so in with recourse in our account accounting now with recourse and without recourse in books is a discounting not in receivable financing it's going to be a separate video focus nothing all right it on with recourse my deliverance class in a treatment accounting it on with recourse acting secured borrowing at conditional sale all right it will add a receivable financing overview so it'll receivable financing this is to raise money or cash in order for the company to pay its current obligation parama kabayan current so accounts receivable but don't waste nothing you know this is what we called pledging assignments or factoring so notes receivable amounts the only way we can raise money from the notes receivable i discounting any indoors nothing you promissory note non-customer or whoever now maker sabanco or any other financial institutions so this is our receivable financing then let's discuss about pledging in assignments pledging at assignments all right now so nothing on different assignments at non-pledging okay so it's an assignment at pledging nato both they borrow money from the bank or other financial companies or institutions so to raise money or cash from this accounts receivable we can do assignments or pledging this is borrowing money from the bank in eco-collateral accounts receivable the difference between this assignment and pledging some assignments specific accounts accounts receivable neon now in assigned nothing as collateral e it's a transfer nothing's account not accounts receivable assign so we are going to transfer that specific accounts receivable to accounts receivable assigned so i'm a gigging anthony not in details assignments nato is debit to accounts receivable assign we credit the accounts receivable all right specific through is it did disclose nothing on notes to financial statements notes two financial statements non-financial statements not then let's say for example we have a trade receivable of 4 million i know consists of 4 million not trade receivables notes to financial statements financial statements all right so hindi nothing gagalowin accounts receivable subledging another account called accounts receivable assigned a to transfer latino accounts receivable then we will record the borrowed money remembers assignment and pledging we borrow money from the bank to raise cash para makaba tayo nagating obligations current liabilities so to record the money that we borrowed from the bank or other financial institutions our entry will be debit to cash [Applause] so we will debit that fees or expenses and then we will credit note payable all right [Applause] specified date all right so our entry for our borrowed money will be debit to cash debit to fees kumar on month usually marron and then we credit to the notes payable same thing with the pledging entries accounts receivable so it's the same the same entry on assignments so we debit cash so yeah entry but we will disclose that on our notes to financial statements assignment namand the transfer nothing new accounts receivable not in a specific na in quinola now we will discuss more about this assignment in detail yuma transactions involving the assignments involving this accounts receivable assigned so in a state on our receivable financing focused on assignment all right