A company operating in the sanitary ware industry has sold its finished goods

to a wholesaler worth of 5 million EGP on credit. It is expected that these

accounts receivables would be liquidated in 90 days. However, the company is

in deep need of instant financing to continue its operations without facing a

liquidity squeeze.

a) What is the best way the company can solve its problem knowing that

there is no room in the credit facility granted to it by the bank to claim

additional funds?

b) Provided that the company they resort to requires an interest rate of

18%, what would be the amount of instant financing they could claim

instantly?