Minggu 14
Learning Goals
1. Review the key components of credit
terms and accounts payable.
2. Understand the effects of stretching
accounts payable on their cost and the
use of accruals.
Learning Goals (cont.)
4. Discuss the basic features of
commercial paper and the key aspects
of international short-term loans.
5. Explain the characteristics of secured
short-term loans and the use of accounts
receivable as short-term loan collateral.
6. Describe the various ways that inventory
Spontaneous Liabilities
• Pembiayaan spontan (spontaneous liabilities)
adalah pembiayaan yang diperoleh dari operasi normal perusahaan.
• Dua sumber utama dari pembiayaan spontan adalah
hutang dagang (accounts payable) dan kewajiban yang masih harus dibayar (accruals).
• Accounts payable dan accruals merupakan
unsecured short-term financing, yaitu sumber
Spontaneous Liabilities: Accounts
Payable Management
• Accounts payable merupakan hutang dagang yang
dihasilkan dari transaksi barang yang dibeli secara kredit.
• Merupakan sumber utama pembiayaan jangka pendek yang tidak memiliki jaminan bagi perusahaan.
• Accounts payable berhubungan dengan the average payment period yang meliputi:
– The time from the purchase of raw materials until the firm mails the payment
In the demonstration of the cash conversion cycle in Chapter 14, MAX Company had an average payment period of 35 days, which resulted in average accounts payable of $467,466. Thus, the
daily accounts payable generated is $13,356 [$467,466/35]. If MAX were to mail its payments in 35 days instead of 30, it would reduce its investment in operations by $66,780 [5x$13,356]. If
•
The firm’s goal is to pay as slowly as possible
without damaging its credit rating.
Spontaneous Liabilities: Analyzing
Credit Terms
•
Credit terms
offered by suppliers allow a firm to
delay payment for its purchases.
•
However, the supplier probably imputes the cost
of offering terms in its selling price.
•
Therefore, the firm should analyze credit terms
to determine its best credit strategy.
Lawrence Industries, operator of a small chain of video stores, purchased $1,000 worth of merchandise on February 27 from a
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Taking the Cash Discount
– If a firm intends to take a cash discount, it should pay on the last day of the discount period.
– There is no cost associated with taking a cash discount.
If Lawrence gives up the cash discount, payment can be made on March 30th. To keep its money for an extra 20 days, the firm must
give up an opportunity to pay $980 for its $1,000 purchase, thus costing $20 for an extra $20 days.
•
Giving Up the Cash Discount
– If a firm chooses to give up the cash discount, it should pay on the final day of the credit period.
– The cost of giving up a cash discount is the implied rate of interest paid to delay payment of an account payable for an additional number of days.
•
Giving Up the Cash Discount
•
Giving Up the Cash Discount
Spontaneous Liabilities: Analyzing
Credit Terms (cont.)
Cost = % discount x 365
100% - %discount credit pd - discount pd
Cost = 2% x 365 = 37.24%
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Giving Up the Cash Discount
Spontaneous Liabilities: Analyzing
Credit Terms (cont.)
The preceding example suggest that the firm should take the cash discount as long as it can borrow from other
•
Using the Cost of Giving Up the Cash Discount
Spontaneous Liabilities: Analyzing
Credit Terms (cont.)
Mason Products, a large building-supply company, has four possible suppliers, each offering different credit terms. Table 15.1 on the following slide presents the
credit terms offered by its suppliers and the cost of giving up the cash discount in each transaction.
•
Using the Cost of Giving Up the Cash Discount
If bank interest rate is 13%
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Supplier A
taking the cash discount, while the
cost of giving up the cash discount 36.5% is
higher than 13%.
•
Supplier B
giving up the cash discount, while
the cost of giving up the cash discount 8.1% is
lower than 13%.
•
Supplier C & D
taking the cash discount , while
the cost of giving up the cash discount 21.9% &
29.2% are higher than 13%.
Lawrence Industries was extended credit terms of 2/10 net 30 EOM. The cost of giving up the cash discount is 36.5%. If Lawrence were able to stretch its accounts
Spontaneous Liabilities: Effects of
Stretching Accounts Payable
•
Stretching accounts payable
simply involves
paying bills as late as possible without damaging
credit rating.
Spontaneous Liabilities: Accruals
•
Accruals (kewajiban yang masih harus dibayar)
merupakan hutang akibat jasa yang diterima, di
mana pembayarannya belum dilakukan.
•
Kewajiban yang paling sering belum dibayar adalah
pajak dan upah.
•
Karena pembayaran pajak tidak bisa dimanipulasi,
maka yang sering dilakukan ialah menunda
pembayaran upah.
•
Menunda pembayaran dengan cara
accruals
Spontaneous Liabilities: Accruals
•
Tenney Company, a large janitorial service
company, currently pays its employees at the end
of each world week.
•
The weekly payroll total $400,000.
•
If they were to extend the pay period so as to pay
its employees 1 week later throughout an entire
year, the employees would in effect be loading the
firm $400,000 for a year.
Unsecured Sources of Short-Term
Loans
Sumber pendanaan jangka pendek tanpa jaminan
meliputi:
•
Bank Loans
sebagai sumber utama
pendanaan yang dapat memberikan pinjaman
jangka pendek tanpa jaminan untuk usaha.
•
Commercial Paper
(surat berharga)
Unsecured Sources of Short-Term
Loans: Bank Loans
• Tipe utama dari pinjaman bank adalah short-term,
self-liquidating loan, pinjaman jangka pendek tanpa
jaminan yang digunakan untuk membiayai piutang dan persediaan pada saat kebutuhan modal meningkat
secara musiman.
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
•
Loan Interest Rates
–
Kebanyakan pinjaman bank berdasarkan
prime rate of interest
,
yaitu tingkat bunga
terendah yang ditetapkan oleh bank nasional
kepada peminjam.
–
Bank umumnya menentukan tarif yang akan
dibebankan kepada peminjam dengan
menambahkan berbagai premi ke
prime rate
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
•
Fixed & Floating-Rate Loans
–
On a
fixed-rate loan
, the rate of interest is
determined at a set increment above the prime
rate and remains at that rate until maturity.
–
On a
floating-rate loan
, the increment above the
prime rate is initially established and is then
Interest
Amount Borrowed
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
•
Method of Computing Interest
– Once the nominal (stated) rate of interest is established, the method of computing interest is determined.
– Interest can be paid either when a loan matures or in advance.
– If interest is paid at maturity, the effective (true) rate of interest—assuming the loan is outstanding for
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
•
Method of Computing Interest
Booster Company, a manufacturer of athletic
apparel, wants to borrow $10,000 at a stated rate of 10% for 1 year. If interest is paid at maturity, the
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
•
Method of Computing Interest
– If the interest is paid in advance, it is deducted from the loan so that the borrower actually receives less money than requested.
– Loans of this type are called discount loans. The effective rate of interest on a discount loan assuming it is outstanding for exactly one year may be
computed as follows:
Interest
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
•
Method of Computing Interest
(10% X $10,000) = 11.1% $10,000 - $1,000
Booster Company, a manufacturer of athletic
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
•
Single Payment Notes
– Merupakan kredit jangka pendek bersifat akad kredit berlaku untuk sekali dan kredit harus lunas pada saat jatuh tempo.
– ‘Note’ menyatakan persyaratan pinjaman, yang meliputi lama pinjaman serta tingkat bunga.
– Umumnya mempunyai jangka waktu jatuh tempo 30 hari sampai 9 bulan lebih.
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
•
Single Payment Notes
Gordon Manufacturing recently borrowed $100,000 from each of 2 banks—A and B. Loan A is a fixed rate note, and loan B is a floating rate note. Both loans were 90-day notes with interest due at the end of 90 days. The rates were set at 1.5% above prime for A and 1.0% above prime for B when prime was 6%.
Based on this information, the total interest cost on loan A is $1,849 [$100,000 x 7.5% x (90/365)]. The effective cost is 1.85%
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
•
Single Payment Notes
Thus, the effective cost is 1.787% [$1,787/$100,000] for 90 days. The effective annual rate may be calculated as follows:
EAR = (1 + periodic rate)m - 1 = (1+.01787)4.06 - 1 = 7.46%
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
• Line of Credit (LOC) / Fasilitas Kredit
– Fasilitas kredit merupakan perjanjian antara bank komersial dan peminjam, dengan jumlah saldo tertentu yang harus tersedia oleh peminjam
selama periode waktu tertentu.
– Biasanya dibuat dengan periode waktu 1 tahun dan memberikan batasan-batasan kepada
peminjam.
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
•
Line of Credit (LOC)
– Untuk mendapatkan LOC, peminjam mungkin diminta untuk menyerahkan sejumlah dokumen termasuk anggaran kas, dan pro forma laporan keuangan terakhir.
– Tingkat bunga pada LOC biasanya mengambang dan dipatok dengan prime rate.
– Bank dapat menerapkan batasan operasi ,
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
•
Line of Credit (LOC)
–
Baik
LOCs
dan revolving credit agreements
mensyaratkan peminjam untuk mempunyai
compensating balances.
–
Compensating balance
adalah jumlah saldo
yang harus dipelihara oleh peminjam dengan
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
•
Line of Credit (LOC)
Estrada Graphics borrowed $1 million under a LOC at 10% with a compensating balance requirement of 20% or $200,000. Therefore, the firm has access to only $800,000 [$1,000,000-$200,000] and must pay interest charges of $100,000 [10%x$1,000,000]. The
compensating balance therefore raises the effective cost of the loan to 12.5% ($100,000/$800,000) which is 2.5% more than the stated rate of interest.
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
•
Revolving Credit Agreement (RCA)
– RCA merupakan jaminan kredit.– Karena bank memberikan jaminan bahwa dana
tersedia, maka bank membebankan biaya komitmen (commitment fee) yang berlaku untuk bagian yang tidak terpakai dari kredit peminjam.
Unsecured Sources of Short-Term
Loans: Bank Loans (cont.)
•
Revolving Credit Agreement (RCA)
REH Company has a $2 million RCA. Its average borrowing under the agreement for the past year was $1.5 million. The bank
charges a commitment fee of 0.5% As a result, they had to pay 0.5% on the unused balance of $500,000 [$2,000,000-$1,500,000] or $2,500 [0.5%x$500,000] . In addition, assuming that REH paid $112,500 in interest on the $1.5 million it actually used. As a
Unsecured Sources of Short-Term
Loans: Commercial Paper
• Commercial paper merupakan bentuk pembiayaan
jangka pendek yang terdiri dari promes tanpa jaminan yang dikeluarkan oleh perusahaan yang memiliki standar kredit yang tinggi.
• Hanya perusahaan besar saja dengan kondisi keuangan dan reputasi yang baik yang dapat menerbitkan
commercial paper.
Bertram Corporation has just issued $1 million worth of
90-day commercial paper at $990,000. At the end of 90
days, Bertram will pay the purchaser the full $1 million. The cost to Bertram is therefore 1.01%
($10,000/$990,000) for 90 days. The effective annual rate
of interest can be calculated as follows:
EAR = (1 + periodic rate)m - 1 = (1+.0101)4.06 - 1 = 8.41%
Unsecured Sources of Short-Term
Loans: International Loans
•
The main difference between
international
and
domestic transactions is that payments are often
made or received in a foreign currency
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A U.S.-based company that generates receivables
in a foreign currency faces the risk that the U.S.
dollar will appreciate relative to the foreign currency.
Secured Sources of Short-Term Loans:
Characteristics
•
Although it may reduce the loss in the case of
default, from the viewpoint of lenders,
collateral
does not reduce the riskiness of default on
a loan.
•
When collateral is used, lenders prefer to match
the maturity of the collateral with the life of
the loan.
Secured Sources of Short-Term Loans:
Characteristics (cont.)
•
Depending on the liquidity of the collateral, the
loan itself is normally between 30 and 100
percent of the
book value
of the collateral.
•
Perhaps more surprisingly, the rate of interest
on secured loans is typically higher than that on
comparable unsecured debt.
Secured Sources of Short-Term Loans
• The Use of Accounts Receivable as Collateral – Pledging accounts receivable occurs when
accounts receivable is used as collateral for a loan. – After investigating the desirability and liquidity of
the receivables, banks will normally lend between 50 and 90 percent of the face value of acceptable receivables.
– In addition, to protect its interests, the lender files a
lien on the collateral and is made on a
Secured Sources
of Short-Term Loans (cont.)
• The Use of Accounts Receivable as Collateral – Factoring accounts receivable involves the
outright sale of receivables at a discount to a factor.
– Factors are financial institutions that specialize in purchasing accounts receivable and may be either departments in banks or companies that specialize in this activity.
Secured Sources
of Short-Term Loans (cont.)
• The Use of Inventory as Collateral
– The most important characteristic of inventory as collateral is its marketability.
– Perishable items such as fruits or vegetables may be marketable, but since the cost of handling and storage is relatively high, they are generally not considered to be a good form of collateral.
Secured Sources
of Short-Term Loans (cont.)
• The Use of Inventory as Collateral
– A floating inventory lien is a lenders claim on the borrower’s general inventory as collateral.
– This is most desirable when the level of inventory is stable and it consists of a diversified group of
relatively inexpensive items.
Secured Sources
of Short-Term Loans (cont.)
•
The Use of Inventory as Collateral
– A trust receipt inventory loan is an agreement under which the lender advances 80 to 100 percent of the cost of a borrower’s relatively expensive inventory in exchange for a promise to repay the loan on the sale of each item. – The interest charged on such loans is normally 2% or
more above prime and are often made by a
manufacturer’s wholly -owned subsidiary (captive finance company).
Secured Sources
of Short-Term Loans (cont.)
•
The Use of Inventory as Collateral
– A warehouse receipt loan is an arrangement in which the lender receives control of the pledged inventory which is stored by a designated agent on the lenders behalf.
– The inventory may stored at a central warehouse
(terminal warehouse) or on the borrowers property (field warehouse).
Latihan Soal
Miracle Corp. mendapatkan pinjaman dari bank
sejumlah $10,000 dengan jangka waktu 90 hari,
tingkat bunga 15%. Bunga dibayarkan saat
pinjaman jatuh tempo.
•
Hitunglah bunga yang harus dibayar pada saat
jatuh tempo.
•
Tentukan bunga efektif selama 90 hari (
effective
90-day rate
) dari pinjaman tersebut.
•
Hitunglah bunga efektif tahunan (
effective
Latihan Soal
Jennifer sedang mempertimbangkan dua tawaran kredit. Jumlah kredit sebesar $15.000 selama setahun. Tawaran pertama dari Bank A adalah bunga dibayarkan di awal
(discount loan) 8%, sedangkan tawaran kedua dari Bank B bunga dibayar kemudian (at maturity) 9%. (asumsi 1 tahun 360 hari).
• Hitunglah bunga yang harus dibayar untuk Bank A dan untuk Bank B.