cost receivables in trade credit will annual discount total policy per financial current inventory this profit they holding order management savings level terms company or finance have that risk on ordering units orders year average from may intermediaries who cash borrowers need funds tax lenders forecast EOQ change number term payment period days revised loss sales customers whereas assets its amounts individual so statement short most between size investors could would intermediaries depend maximum costs if then liabilities at investment before want reduce competitors liquidity needs debts expertise shared among after general also offer maturity transformation bridge gap wish provided for liquidity desire loans over longer periods other link shares retained group net together large position sample answer reserves expenses overdraft long gross bank model size non loan method year note since buffer stock common both models convenient been omitted calculations full marks still gained approach surplus balancing currently figure under new only pay role readily accessible interest using reduction administration sales route aggregate invested taking benefit proposed should accepted although does obtain being achieved necessary take therefore value affected which payables reduce equal benefits occur at factors small there substantial amount capital tied up by aimed pooling reducing revenue not granting provide freely shortening means including opportunity high assume ordinary dividends competitor unless can differentiate itself equity borrowed it least match offered avoid business organizations improve consider debt factoring invoice discounting appetite prepared higher levels bad such offering relatively relaxed increase volume losses lacks particularly monitoring choose factor their