With that, we need to discuss our corporate instruments of financial expansion, and the elements that those financial instruments will incorporate.
Within the approaches chosen for financial expansion, we need to develop a one, three and five year financial approach, with a ten year revamping contingency, if still in operation strongly, toward our goal in expanding in order to become a multi-billion dollar, multinational organization. Right now, we are going to focus on the three to five year tier of our planned goals.
As the appointed treasurer of World Access Healthcare, Inc., the timing of this report and expansion is critical. Thus, let's begin to outline, chart and discuss potential financial avenues, in detail, as well as outline or highlight their benefits in regard to expansion.
First, let's get familiar with the terminology at hand. An asset backed commercial paper has a similar premise as a promissory note-a note in which a person (or business entity) gets promised payment by a company or corporate body in lieu of actual cash or currency payment during a rocky receivable period or a cash poor time. However, an asset backed commercial paper is strengthened more than that of a promissory note because it actually contains some actual capital or segue to that capital in some manner, such as through a receivables guarantee, or a cash asset assessment. In a receivables backed, asset backed commercial paper, your business basically states that it has in it's function, a proven receivable track record of meeting the note of asset backed commercial paper, through receivables. This does two things. One, it allows the commercial note or paper to be stronger than just a financial paper contract. Also, it allows two key components of a contract to form which are an offer, backed by a consideration (a form of money). Two, it allows a company or financial institution to have more than a companies corporate reputation and past record of it's receivables as a base in which they operate, further securing the asset backed commercial paper (ABCP). Basically, this note, as described in detail and (Fritz, et al, Sept. 29, 2005, Reprinted from Ratings Direct) is credit extended with an asset back up feature in the form of a note. As aptly stated (Fritz, et al 2005),
"ABCP conduits are typically established and administered by major commercial banks to provide flexible and competitive low-cost financing to their customers. "
Utilizing the features of an asset backed commercial paper, the venue that is needed for this transaction is a singe seller conduit, which is, (according to an excerpt from www.ratingsdirect.com),
"A single-seller ABCP conduit is a limited-purpose, bankruptcy-remote entity that issues CP as a way to finance the assets of a single originator. Such conduits are most suitable for asset originators with large pools."
Here is the explanation of an ABCP which is the accepted acronym for asset backed commercial paper, summarized, in layman's terms. (Fritz, et al, Sept. 29, 2005, Reprinted from Ratings Direct)
Even with other choices present, this is one way to effectively finance our corporate expansion goals. We can ask for a fixed low interest rate a couple of points