Innovations in Financing

This study assessed the effects on sales in the market for medium-duty and heavy-duty trucks in the EU of creative financing solutions and innovations in financing made available to buyers of these trucks by truck manufacturers and distributors. Two research questions were investigated, as follows:

What type of creative financing program, innovation in financing, or combination of multiple solutions lead to increased sales in the EU market for medium-duty and heavy-duty trucks?

To what extent and in what direction do the sales of manufacturers and distributors of medium-duty and heavy-duty trucks in the EU who offer creative financing solutions differ from the sales of manufacturers and distributors of medium-duty and heavy-duty trucks in the EU who offer creative financing solutions who do not offer creative financing solutions?

Null hypotheses were tested in relation to each research question investigated. The null versions of hypotheses were as follows:

There is no relationship between variations in sales growth, as reflected in market share, of companies in the medium-duty and heavy-duty truck industry in the EU and the type of financing programs offered to customers.

There is no relationship between variations in sales growth, as reflected in market share, of companies in the medium-duty and heavy-duty truck industry in the EU and the extent to which companies offer

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owever, if the firm's customers resent dealing with the factor (Trepins, 2001). Pledging accounts receivable by a firm differs from factoring in that the firm receives a short-term loan from a financing source by pledging the accounts receivable as security for the loan. In other words, the collections from the accounts receivable pledged cannot be used by the firm for any purpose other than retiring the loan for which they are security. While such an arrangement limits to flexibility of a firm to conduct its financial activities, firms typically benefit from such an arrangement through the lower interest rates that typically are associated with a secured loan as opposed to an unsecured loan. Another advantage for a firm in pledging its accounts receivable is that the firm's customers nominally continue to deal directly with the firm, although the mailing address for payment on their accounts may actually be that the bank or other financial institution extending the secured loan (Ross, Westerfield, & Jaffe, 2002). Obtaining a secured loan also may impose restrictions on the borrower with respect to the raising of additional capital. As an example, an asset securitization agreement may prohibit the borrower from issuing oth
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Some common words found in the essay are:
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Approximate Word count = 9833
Approximate Pages = 39 (250 words per page)

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