ASSIGNMENT 3

Assignment 3

Assignment 3

Loan has become a normal part of trade in the business world. Today, companies have a credit risk when extending credit to their customers and do not require an advance payment for goods or services that they offer.

It was expected that the delivery of the items that they sell to obtain a first or supply a product or service offered comes first and the customer is billed later. Companies often offer this service in terms of 30 or 90 days for payment. However, the company bears the credit risk between the delivery and payment (Cornett, 2006). So how ...