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RE: Accounts receivable management and its impact on financial liquidity.

in Project HOPE4 years ago

Greetings friend @dgalan, in an inflationary economy like the one Venezuela is living, it would be a financial risk for companies to grant credits, because when the money returns to lost its value affecting the inventory replenishment. Even financial entities no longer grant credits of any kind due to this situation.

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Greetings @Carlir , Very true your appreciation, but if there are some companies that run the risk and grant loans with interest rates in foreign currency to avoid losing the invested capital and to replenish their inventories again, however by the same hyperinflation of the country some accounts are difficult to collect hindering the liquidity of the same.
Thank you very much for your comments