Companies tend to make prepayments because suppliers may insist on receiving payments before they make a supply. This is often a custom in the insurance industry, where they request for premiums before the insurer covers the insured against a risk. For the purposes of renting out commercial premises, licenses are often paid for in advance before granting right of use to the tenant. Prepayments can be made by customers who may want to benefit from discounts and economies of scale. Prepayments co ...
Bad debts recoverability
Businesses are facing significant and unprecedented challenges caused by the COVID-19 pandemic and economic backlash. One of the main challenges is that both businesses and clients have not only fallen into debt but have defaulted payments and are currently unable to timeously settle their debts. Bad debts or irrecoverable debts are one of the expenses that have become so popular for many entities in the face of the above stated challenges. In terms of the law bad debts written off can be ...