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Finance has three different sub-categories which are public finance, corporate finance, and personal finance. Money is the medium of exchange in all daily transactions in every economically developed region. Finance includes dealing with assets and liabilities in an investment. Financial services are the services which are provided by finance institutions which include banks, credit card companies, and insurance companies. These facilities have a mandate of managing of money from their members. A financial service or consultants like Doug Foshee varies according to the agreement of the client and the financial institution.

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Asset based lending

Asset based lending is a business loan where the security for the loan applied is the collateral assets which include invoice, balance sheet and account receivable. Collateral is an asset which the company uses to secure a loan from the lender. When securing a loan with collateral, its value is considered as the basis on how much amount of money a borrower will be granted. The credit given must be lower than the value of the collateral. Asset based lending also known as commercial finance is often used to meet cash flow needs in businesses. The business loan interest in this category is always small compared to a loan which is unsecured.

When the borrower fails to comply with terms and conditions agreed for payment, the lender has the capability to seize his assets. Companies consider asset financing when they are in short of working capital; they borrow the funds which are payable within a short period. Commercial financing has become popular and considers the business operators rather than borrowing loans from the bank. The credit given is payable within the period agreed between the borrower and the lender. Terms and conditions apply.

Foreign exchange services

This is a service where one exchanges one currency for another. The service is available in many local financial institutions in every region. There are offices at border points where people changes the currency of their country to that of a foreign.The coins look different and have different values as per the country’s constitution.USA dollar is standard in various international markets. In recent decades, exchange of currencies has been increasing gradually due to globalization where people moves from one country to another as tourists or for business purposes.Forex is the term used to refer to foreign exchange with major trading centers based in London, New York and Tokyo in Japan.The global foreign exchange market being the largest financial market globally dealing with trillions of dollars on a daily basis.Wire transfer is a process where a client sends fund to international financial institutions abroad. The term remittance in foreign exchange services means the transfer of money by migrants back to their mother country.

Purchase order financing

fundingThis is a funding option for companies which have run short of working capital to meet the customer orders. In businesses, the cash flow sometimes is low to enable the business owners to cater for the high number orders from the customers. In this kind of situation, the company cannot afford to break the trust and lose the client. If the company gets away with the client orders due to lack of enough funds will lead to loss of revenue and create a bad image for the company.

In this scenario, the company seeks purchase order financing where one company pays the supplier of another company for the goods supplied to the client. The both company involved have an agreement on to whether to finance the order 100% or just a certain percentage. During this transaction, the purchase order finance company gets a certain percentage of the money which in records of the invoice. Businesses mostly consider the service rather than visiting banks to borrow a loan. The process is straightforward and fast avoiding time wastage which is common in many banks.