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Essay's paper info
| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1457 |
Essay's paper body
However, allowing a customer a period of credit is a business risk as the cash from sales is the lifeblood of an organization. If a customer delays paying for the goods they have been supplied with (as is the case with Mayo), this can cost the organization money, especially if they have to borrow to fund the business while waiting for payment (as is the case with Lawrence)...
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If a customer delays paying for the goods they have been supplied with (as is the case with Mayo), this can cost the organization money, especially if they have to borrow to fund the business while waiting for payment (as is the case with Lawrence). At worst, it could stretch the cash flow to the point where the business could fail (which Lawrence is facing)...
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General points of the essay
ANALYSIS ON CAPITAL STRUCTURE, DIVIDEND POLICY & WORKING CAPITAL REQUIREMENTS OF
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