Question

What are the pros and cons of counter trade from firm's point of view?

Answer 1

Going by the current trends, it may be arguably noted that traditional and mainstream micro business financing such as credit and business loans are inadequate or not within reach for small business owners. Nevertheless, small business owners still realize the need to acquire financing to grow their businesses and curb cash flow shortages. It is at such hard times that many business owners turn to accounts receivable financingas a way of acquiring the cash they need.The benefits of accounts receivable financing for businesses can be too hard toresist. Its lure ofgetting immediate financingto enhance business growth is apowerful solution. This articletakes a clear look at all the imperative issues that everybusiness ownermust look outfor before signing the dotted lines of any accounts receivable financing agreement, as well as all its good and bad aspects.But before we go into that, let's understand this type of financing.

Answer 2

It facilitates and enhances healthy competition among the selected firms this is because each firm will be striving to offer the best quality to its clients and consumers in the process it improves the quality of the goods they offer to their consumers. It subsidises the prices of the goods and reduces customers pressure and dependency rate to their clients.