The word “receivables” is a perfectly acceptable and commonly used word in written English.
It is generally used when referring to the money that a business is owed from its customers or clients. For example, "At the end of the fiscal year, our company's receivables amounted to $500,000."
Before the Durbin-Delahunt bill, the biggest test came in December 2000, when LTV, a steel company, filed for bankruptcy and tried to retain money it received on inventory and receivables that it had already in effect sold to two special-purpose vehicles for $650m.
They hold credit balances with CIT after selling their receivables to the firm but receiving only a portion of the payment upfront.
A bank on the receiving end of mortgage repayments or credit-card receivables can do something similar: bundle the loans up and sell them, or use them as collateral to get funding, which it can then use to issue more loans.
An example is treasury services (helping companies manage payments to suppliers, collect receivables and so on), a humble yet lucrative business in which BofA is number one on its home turf.In practice, such "cross-selling" is hard to pull off.
On November 5th it posted a clutch of new suggestions on its website that included new risk weightings for smaller companies, and proposals that physical collateral, receivables and even leased assets be used to lessen a particular company's credit charge.
"They can no longer think of it as some bank's problem, not theirs," says Caitlin Long of Morgan Stanley's corporate-strategies group.Another new form of invoice-based financing is the Receivables Exchange, an 18-month-old electronic market on which firms can sell invoices to institutional investors.
America's government is working hard to revive markets for securitised debt, aware that banks lack the balance-sheet capacity to absorb all of those credit-card receivables and auto loans.
The number crunching revealed high receivables, low payables, and ridiculously high inventory levels.
They might, for example, lend to a manufacturer that has no collateral other than the receivables it expects to get from its customers.Repackaging loans identified, priced and managed by the banks is, therefore, a waste of their talents.
Since the trading firm owes 1.5 trillion won ($1.3 billion) of net receivables to SK Corp, and since its other creditors have been prodding SK Corp to write this off or swap it for equity, Sovereign Asset Management has continued to ask how this would be in the interest of SK Corp's shareholders.That is now an important question in South Korea.
After the takeover, it will manage card receivables of $169 billion, more than its two nearest rivals combined.
