Also, what are the risk return trade off for keeping inventories?
2007-03-04 17:26:33 · 5 answers · asked by atticus 3 in Business & Finance ➔ Credit
You touched on it; sales get inventory out the door. Inventory is expensive to keep around.
And, generally speaking, unless firms are in financial trouble they will make their payables. Some just are not very good about hitting it on time.
2007-03-04 17:57:58 · answer #1 · answered by Anonymous · 0⤊ 0⤋
By taking a chance, they get additional revenue from the people that do pay on-time. For the people that won't pay, they get additional revenue from the interest which grows on the unpaid amount and will eventually sue for their money. The people who apply for items that they know they cannot afford are the ones to blame.
2007-03-04 17:46:48 · answer #2 · answered by Mariposa 7 · 0⤊ 0⤋
They just write it off on their taxes as a loss, so what do they have to lose? And..it clears the store of inventory!
2007-03-11 18:22:47 · answer #3 · answered by Gini 1 · 0⤊ 0⤋
interest, lack of inventory, and increased sales and product exposure all contribute here
The buyer is responsible - unequivocally
2007-03-12 10:34:42 · answer #4 · answered by Byron W 3 · 0⤊ 0⤋
they hire collection agencies to collect from the people who do not pay them back.
2007-03-11 19:10:52 · answer #5 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋