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Trump and Xi meet

Over the weekend, at the G-20 meeting, President’s Trump and Xi meet to discuss the trade tensions/Trade War between the U.S. and China. The gist of the meeting was that the Trade War will take a pause for 90 days. The world financial markets are hoping that these two leaders can come to a longer-term agreement during that time frame and these trade tensions will de-escalate.

Powell turns less hawkish

 Powell Turns Less Hawkish—-11/28/2018

Fed Chair Powell gave a speech in which he said that interest rates are closer to neutral rather than still accomodative. This has eased the markets concerns that he was going to keep the hammer down and raise rates indefinitely, which would run the risk of destroying the economy. As I type this, the Dow is up over 500 points today.

https://www.cnbc.com/2018/11/28/stock-market-wall-street-looks-to-fed-chair-speech-and-trade-news.html

Markets continuing to be Jittery

 Markets Continuing to be Jittery—-11/12/2018

After a nice rally last week, the markets started to sell off again after the Fed meeting. I believe the reason is two fold:

1) Fed Chair Powell gave no indication that he will stop raising rates.

2) There is no trade deal with China

Regarding the first point, the market needs reassurance that the Fed will not keeping raising rates indefinitely. However, Chair Powell has given no hint that he will stop. The market would love to hear him say something as simple as, “the Fed will be data dependent regarding future interest rate hikes.” But, again, he hasn’t done that as of yet.

Regarding the second point, seemingly every other nation/organization has signed a new trade deal with the U.S. and/or given hints that they are working towards an agreement, except China. The market will not be fully settled until this is done. The largest players on the global economic stage are the U.S. and China and until there is an agreement on how business dealing will be done between those two, global market will remain volatile.

A Look At Primary And Secondary Markets

Payment terms for these invoices could be 28 days for some, but as much as 120 days for others — taking even longer if the customer doesn’t pay on time.

Conrad Ford nails it in his July 28, 2016 article entitled, “What is Invoice Factoring” when he says, “there’s a big cash flow gap between spending money to complete a project, and receiving payment for it.”

The term spot factoring is a popular option to solve cash flow issues today. It is basically the same thing as single invoice finance, and refers to the increasingly popular practice of being able to pick your spots and choose which invoices you want to factor. This allows you to maximize the amount of cash that you have on hand while incurring the minimum fees to guarantee sufficient cash flow.

There’s a big cash flow gap between spending money to complete a project, and receiving payment for it.

Typical Spot Factoring Transaction

Each transaction has three main parties: the company that sells the invoice, known as the Client; the company that will pay the invoice, known as the Client’s Customer (or account debtor); and the Forex that provides funding through its spot factoring service.

  • Forex’s invoice factoring services are fast, and in fact, unmatched in the industry.
  • You can decide what percentage of an advance you need.
  • There are no long term contracts involved.
  • There are no hidden fees.

If you would like to learn more about Forex’s Spot Factoring services, call +65 6666 6666

Stocks Basics: How Stocks Trade

Payment terms for these invoices could be 28 days for some, but as much as 120 days for others — taking even longer if the customer doesn’t pay on time.

Conrad Ford nails it in his July 28, 2016 article entitled, “What is Invoice Factoring” when he says, “there’s a big cash flow gap between spending money to complete a project, and receiving payment for it.”

The term spot factoring is a popular option to solve cash flow issues today. It is basically the same thing as single invoice finance, and refers to the increasingly popular practice of being able to pick your spots and choose which invoices you want to factor. This allows you to maximize the amount of cash that you have on hand while incurring the minimum fees to guarantee sufficient cash flow.

There’s a big cash flow gap between spending money to complete a project, and receiving payment for it.

Typical Spot Factoring Transaction

Each transaction has three main parties: the company that sells the invoice, known as the Client; the company that will pay the invoice, known as the Client’s Customer (or account debtor); and the Forex that provides funding through its spot factoring service.

  • Forex’s invoice factoring services are fast, and in fact, unmatched in the industry.
  • You can decide what percentage of an advance you need.
  • There are no long term contracts involved.
  • There are no hidden fees.

If you would like to learn more about Forex’s Spot Factoring services, call +65 6666 6666