8m, with an advance rate
of approximately 84% of the outstanding customer receivables portfolio balance.
The determinants of the CBA's advance rate
Tom Conforti, the company executive vice president and chief financial officer, said 'Continued strong demand in the asset-backed securities market and the low interest rate environment gave us the opportunity to achieve a higher advance rate
and lower interest costs compared with recent transactions.
The bonds are likely to offer the firm with an advance rate
of around 72 percent on applicable collateral.
The bank has lowered its prime lending rate, called the benchmark advance rate
, to 15.
The cost can soon mount up: an online gambler racking up pounds 5,000-worth of debt on a credit card at a 22 per cent cash advance rate
will repay at least pounds 1,100 per year in interest unless they clear the debt.
5 million with terms up to 30 years and an advance rate
of up to 80%.
The advance rate
is the percentage a lender uses to determine the amount of money it will loan against certain assets.
Tomorrow is the last day they will be available at the discounted advance rate
- to save pounds on the gate and time queueing.
Based on analysis over a three- to five-year period, they will assign your receivables an advance rate
that reflects the pool's investment grade risk.
If it were to factor all of its A/R with an advance rate
of 85% made in three days, the DSO would be reduced to eight days, nearly an 80% improvement in cash flow.
Before applying the appropriate advance rate
(typically 85%), the A/R lender will eliminate certain ineligible items from the base, including contractual reserves, aged receivables (i.