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• 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
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.
They want to make sure customers have money to pay....for sureity for long term consistancy
It improves cash flow, specially for long duration projects
