Financial appraisal
Advance payment is usually required by suppliers of goods with an aim of ensuring that the buyers of the goods actually pay for the goods when they are delivered. In addition, advance payment ensures that the individuals who have ordered the goods do not fail to receive the goods when supplied. However, there is a possibility that the suppliers may not be able to supply the goods and this can lead to loss of cash to the individual buying the goods. Advance payments are usually made to suppliers who are known to the business. These suppliers should be trustworthy and ...