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. Following is an excerpt from a news article titled, Switching Off Cash Supply Causes a Nasty Shock published recently by BloombergQuint .When the global

. Following is an excerpt from a news article titled, Switching Off Cash Supply Causes a Nasty Shock published recently by BloombergQuint .When the global economy went into hibernation to try to halt the spread of Covid-19, companies everywhere scrambled to get their hands-on cash. Banks, shareholders and governments were all tapped for money, but self-help played a big part too. Businesses tried to clear their inventories, to get paid quickly for their products and services, and to pay their bills more slowly. Do all those things and a company should have more funds in the bank to pay wages and other fixed costs crucial if you want to survive an economic crisis of this scale. As is so often the case, those creative types in the finance industry have come up with a smorgasbord of ways to help firms increase their cash holdings. The oldest and most common is called factoring. A. Explain the process of raising funds through the method mentioned in this excerpt. (15 marks) B. How is this method of raising funds different from the traditional method of getting bills discounted at the bank? (5 marks)

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