An international audit company "Kudos Georgia" in cooperation with GDBA has prepared a newsletter specially for its members.
Most distribution companies finance their consignment with a bank loan, which is followed by interest expense and, at the same time, a commitment to repay the loan principals at regular intervals.
Often, companies do not calculate the loan amount correctly and do not even consider bank payments in pricing process. At the same time, uncertainty arises during the growth of the trade, which requires a very accurate calculation in terms of finance-planning.
Newsletter prepared by Kudos Georgia explains the following issues:
How to calculate the loan amount required for consignment?
What should we consider when financing a consignment loan in product pricing?
Why is the increase in sales in some cases the cause of the crisis in companies?