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Impact Of Late Payments On Business Investments

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Running Header: IMPACT OF LATE PAYMENTS ON BUSINESS INVESTMENTS 1
Impact of Late Payments on Business Investments Paper
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IMPACT OF LATE PAYMENTS ON BUSINESS INVESTMENTS 2
Impact of Late Payments on Business Investments
In the realm of financing activities, a company can opt for a positive cash inflow in the
form of a loan (CT, 2012). A loan is positive cash flow because it increases the amount of funds
held by a particular institution. Nevertheless, a loan is a long term liability that is difficult to
secure; sometimes the loan is issued too late hindering its use for business investment purposes
(CT, 2012). In situations where the loan is awarded quickly, the recipient organization is able to
use the funds to manage new business ventures. The input of company resources in a given
project will influence the speed with which the business venture is optimized (CT, 2012).
For instance, the continuous pumping of funds into worthy investment projects is a good
technique that ensures financial needs do not limit venture realization. The movement of cash
between the company and the investment project is worth noting for the formulating and analysis
cash flow statements (CT, 2012). The cash flow statement is a vital tool is the assessment of
company fundraising techniques. For example, a company can raise cash inflow through the
issuance of stocks or through the acquisition of a loan. The main purpose of raising quick cash is
to avoid late payments. Late payments limit work performance and business growth (CT, 2012).
Advantage of selling Stock for Stock
The retention of ownership is the main advantage of selling stock for stock; the seller
does not loss his/her ownership rights, he/she simply exchanges ownership in one company for
ownership in another company (Kokemuller, 2013). The sell may allow the seller to reduce
his/her debt level by avoiding the acquisition of loans that demand interest and principal
payments. As such, an investor who trades stock for stock is bound to benefit from lucrative

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Running Header: IMPACT OF LATE PAYMENTS ON BUSINESS INVESTMENTS Impact of Late Payments on Business Investments Paper Student’s Name Professor’s Name Affiliation Date 1 IMPACT OF LATE PAYMENTS ON BUSINESS INVESTMENTS Impact of Late Payments on Business Investments In the realm of financing activities, a company can opt for a positive cash inflow in the form of a loan (CT, 2012). A loan is positive cash flow because it increases the amount of funds held by a particular institution. Nevertheless, a loan is a long term liability that is difficult to secure; sometimes the loan is issued too late hindering its use for business investment purposes (CT, 2012). In situations where the loan is awarded quickly, the recipient organization is able to use the funds to manage new business ventures. The input of company resources in a given project will influence the speed with which the business venture is optimized (CT, 2012). For instance, the continuous pumping of funds into worthy investment projects is a good technique that ensures financial needs do not limit venture realization. The movement of cash between the company and the investment project is worth noting for the formulating ...
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