Advance payments represent such form of between the seller and the buyer at which the buyer pays previously to the seller part of cost of goods (service), certain, between them, to delivery; and final settlements between the parties after the actual shipment (receipt) of goods (rendering service).
At the same time, advance payments as well as a, mean for the buyer temporary withdrawal of the capital from a turn therefore they are not favorable to the buyer and, on the contrary, are preferable to the seller receiving a certain part of cost of the goods which is subject to sale before implementation of deliveries.
The bill form assumes implementation of calculations with use of bills. The bill - is the written debt obligation. Distinguish two main types of bills: idle time (the bill – solo) and rewater (bills of exchange.
The phenomenon of non-payments is developed against the general state of the economy, the proceeding and decline in production. Especially strong recession is observed in the branches working for the end user: in the light and food industry, in agriculture, production of a household. Meanwhile, exactly these branches have the shortest receivables.
Advance payments represent a certain risk for a because he is obliged to transfer some amount of money prior to deliveries. However in this regard the third party should consider option, more flexible and safe for the buyer, when the advance payment not directly to the supplier, and, both the buyer, and the seller trust. And only after the actual delivery the specified advance payment is transferred to the seller. For the seller this option is reliable because he is sure that the money making advance payment is transferred by the buyer and the third party; and the specified option is of interest to the buyer because in case the supplier does not fulfill the obligations, the advance payment transferred by the buyer will be in the guaranteed order to it is returned.
Along with normally functioning firms in any economy exists the impractical, inefficient or simply dishonestly working enterprises. Thus it is important that non-payments stopped being the problem mentioning economy in general which all society has to solve. Financial wellbeing or trouble of the separate enterprise has to concern, first of all, this enterprise.