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The shareholder speculated that the Highland groups "lent money to yet another entity, Highland 2000, where they could buy the stock and then show a big receivable at Highland Video and Highland Prestige without raising questions from the banks".
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No problem, WorldCom says: Yes, it will soon take up to $20 billion in charges to shrink goodwill, but it won't write down network assets or take a big bath on receivables.
Or that the customer has suddenly been hit by a big lawsuit, inadequate insurance, stale inventory or bad receivables?
We had to raise debt in Brazil in order to factor the receivables to merchants, because prepayments are a big part of the market.
Given that the Nuts 'N More founders were looking for money to fill a big order, I wonder if they could have instead employed purchase order and receivables financing.
Wal-Mart's new Supplier Alliance Programme, for instance, offers around 1,000 of its suppliers payment in 10-15 days (compared with a typical 60-90) in return for a slightly lower price.Such "invoice discounting" can be a big help to small firms, which typically have half of their working capital tied up in accounts receivable.
Company A debits Lease Receivable, a long-term asset account, for $120,000.
But it turns out that even big companies that have an accounts receivable team don't have the right tools for the job.
A loan receivable is money the company lent someone, usually a business partner.
A receivables management firm offers an "A to Z of receivables management".
"The company is still carrying the Carlyle bill as a receivable".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com