Financially stronger suppliers, on the other hand, can dictate stringent credit terms but may prefer to extend liberal credit so long as the transactions provide benefits in excess of the costs of extending credit.

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Conservative working capital techniques and work to evaluate working capital management were fixed effects of! Indeed enforcing credit terms can be a problem, particularly for smaller firms. In consequence, if the imposition of statutory interest significantly reduces the trade credit offered to smaller firms, this may lead to severe liquidity problems and increased failure rates unless alternative finance is readily available. Your email will only be seen by the event organizer.

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