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Q. What are the financing methods?
- The export transaction could be correlated to a bill of exchange. If this bill was established (guaranteed) by the bank it could be discounted (sold for less than its face value) to provide immediate finance rather than wait until the customer made payment in six months time.
- The export transaction might be in order via an export merchant which would buy the goods outright from Vertid or a confirming house acting as an agent for the foreign buyer which would normally arrange for payment to be made to Vertid upon evidence of shipment of the goods eliminating the need for external financing.
Types of financial incentive schemes Performance associated pay (PRP) systems e.g. piecework or sales commission Bonuses e.g. supplementary payments for targets or ai
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evaluate the importance of leverage in a small scale companyestion..
Accounting Rate of Return (ARR): This technique relies on the rate of return every project will earn over its life. It takes the help of accounting profit while calculating the
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