Abstract Science Construction’s business is in planning, developing and building road projects. The major of its clients are municipalities, city governments, and other public sector entities. While the bankruptcy rates for these clients is very low, when economic downturns happen, their ability to pay in a timely fashion also suffers. This leads to businesses such as Science Construction needing to take on additional debt and to find creative methods in order to stay afloat during times of recession. Methods such as selling accounts receivables at discounted rates and taking larger lines of credit through banks and other lending institutions are some of the ways organizations can remain viable when their cash inflows have turned into a trickle. Science Construction is asking the Turkish Courts to postpone their bankruptcy proceedings for a year while they attempt to restructure. Through this, suggestions such as forcing shareholders to pay their debt to the organization, gaining credi...
EXPLAINED... { IN SIMPLE THE DESI WAY } Khaja Bhai is the proprietor of a Nehari Shop in Hyderabad . Sales are low and, in order to increase them, he comes up with a plan to allow his customers to eat now and pay later. He keeps track of the meals consumed on a ledger. Word gets around and as a result increasing numbers of customers flock to Khaja Bhai’s Hotel. Khaja Bhai's suppliers are delighted and are very willing to sell more and more raw materials for the meals he prepares. Khaja Bhai shows them his ledger of receivables and they extend him credit. A young and dynamic customer service consultant at the local bank recognizes these customer debts as valuable future assets and gives Khaja Bhai a credit line and then increases his borrowing limit. Taking advantage of his customers' freedom from immediate payment constraints, Khaja jacks up the prices of his Nehari, Kulche, Jabde, Paaya and Zabaan. Customers don't mind as they are not required to pay ...