Doncouse_Jeremy_Week6

Doncouse_Jeremy_Week6 - getting working capital without...

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Jeremy Doncouse FIN310 Web Exercise Week 6 1) GE Capital provides loans, operating leases, financing programs, equipment leasing, and other services to businesses around the world. 2) The main advantage is the acceleration of cash flow to the borrower to support working capital needs. By using current assets as collateral the company can get its cash sooner than if it had to wait to sell inventory. Cash can be given as needed and excess cash can be used to pay down the loan balance and minimize interest. Inventory financing is a low-cost alternative to
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Unformatted text preview: getting working capital without slowing down growth or add to equity capital. 3) GE Capital Corporate Finance has nearly $30 billion in assets making it one of the largest providers of asset-based, cash flow and structured loans and leases for mid-sized and large U.S. businesses. According to our text book, GE ranked as one of the top 10 largest U.S. banks at the end of 2007. Plus, it is not regulated as regular commercial banks are. These contributing factors, in my opinion, make GE Capital very competitive....
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