What Are the Pros and Cons of Cash Credit?

Cash payment is the simplest payment method in the transaction. Once the shareholders of a shell company receive cash payments for their shares, they no longer have ownership of the shell company and all other rights derived from it.

cash payment

1. Pay individual employees' salaries, bonuses and allowances.

2. Payment of employee benefits,

The advantage of cash payment is that the transaction is simple and fast, especially in

From the case of 1997, cash payment is the most important payment method. The reasons are:

The problem of triangle bonds among enterprises is serious, and corporate credit is poor, and cash payment is the most popular payment method.

Listed companies have low asset-liability ratios. Due to the strong financing capabilities of the stock market, cash sources are basically guaranteed. Moreover, many listed companies' listing aims to cash out investment projects of major shareholders.

The wave of asset reorganization has just started in China, and neither investment banks nor listed companies have a sufficient understanding of the payment functions of emerging financial instruments. On the other hand, due to the lag in financial reform, the restriction on financial innovation is also an objective reason for a single payment method.