Bankers' acceptances are time drafts that a bank guarantees, commonly used in international trade to facilitate transactions between exporters and importers. They are negotiable instruments that provide assurance to sellers that they will receive payment, while allowing buyers to delay payment until a future date.
A factoring agreement is a financial arrangement where a business sells its accounts receivable to a third party, called a factor, at a discount to bolster cash flow. This agreement helps companies improve their liquidity by outsourcing the collection process, often benefiting those with immediate funding needs or operational expansion plans.
Price reduction strategies are techniques used by companies to decrease the price of a product or service to boost demand or clear out inventory. These strategies can significantly affect profitability, customer perception, and competitive positioning in the market.