In many cases an overdraft is secured. A factor is typically a finance company but may also a bank or bank subsidiary. Invoice discounting is an agreement similar to factoring agreement, in which the selling company retains the sales accounting function. Money markets Large sums of money are lent or borrowed. Interest rates are determined by market forces.
Participants are large and well-known entities.
Most banks are dealers in this market. 4.Short-term marketable debt Securities such as promissory notes and bill of exchange are a promise to pay a sum of money on a future date. The promise may be sold. Only large, reputable companies and government entities are able to raise funds by issuing promissory notes. The purchaser is also called discounter.