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Why do companies require deposits & advances?

• They don't trust the customers to pay

• They want to make sure customers have money to pay

• It improves cash flow, specially for long duration projects

Accounting Accounts Payable Finance
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Question ajoutée par Majid Wangade , Senior Accountant , KANTOUR LIMITED COMPANY ( Real Estate, Construction and Asset Management )
Date de publication: 2016/02/15
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Junaid parkar
par Junaid parkar , Senior Accountant , Takenaka - New Doha International Airport (Emiri Terminal and mosque)

Companies take deposits and advances  to improve their cash flow in long duration project. This is from companies point of view.

Same time company assures the banker by taking Advances to pay them in future and assures customers the delivery of asset by taking deposit from them.

Anwar Ahemad Khan
par Anwar Ahemad Khan , Chief accountant Cum Office Incharge , Culligan Kuwait for Water Treatment Equipment WLL

They want to make sure customers have money to pay....for sureity for long term consistancy

Utilisateur supprimé
par Utilisateur supprimé

companies require deposits & advances because it improve cash flow of company, Its does not mean than the company don't trust the customer's.

Karan Bhutani
par Karan Bhutani , Business Development Executive , Standard Chartered Holdings

 It improves cash flow, specially for long duration projects

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