00:01
The question asks you why do we why do business sometimes accept no receivables for our customers? so there are several reasons for this.
00:14
So first of all it gives you a legal protection because the note receivable is a written commissary so it includes the information such as as the terms of the balance and interest rate and do those important information.
00:48
So when you have a written permissory, it is easier to be enforced by law.
00:55
And so this gives you greater legal protection.
00:57
So this is the first way.
00:59
Second, it gives financial flexibility.
01:04
So as we just see, one of the options says that when a customer cannot pay back on time, so the customers are willing to provide a note to pay back or to repay the balance over a period of time, an extended period of time, especially with interest.
01:57
So from this, the business is able to recover some of the money or all of the money without losing it because the customer are willing to pay back gradually in an extended period period of time, although it's not immediately, but at least the government is able to recover the money over the extended period of time and with interest.
02:21
So this gives both customer and business financial flexibility...
