MGMTSB102 Lecture 19: CASE STUDY BELCO
Document Summary
On-time payment is always a concern of the international buyers. One of the reasons causing the problem is that the sellers do not trust the buyer; therefore, they choose to pay later if there exist any unqualified products. For example, belco is a global leading marketer of poultry, meat and other food products. The company"s credit team was facing a problem of collecting account receivables, particularly from kooritsa kiev. Having been collaborated with belco for four years, kooritsa had committed on placing large order and made quick payments in early 2008. It was 40 days since kooritsa received the order, but the company hadn"t pay back. Belco, which was about ,000; and the company was going to have an outstanding balance for an additional ,000 that would come to due in 15 days. Attractive to importers since they can resell foods before having to pay - generate working capital needs for exporters - the highest-risk option for exporters.
