Is well known that business enterprises to do business, once the money is not enough, in order to maintain the normal operation of the business to the need for new funds for working capital. And because of cash flow problems and faltering under the premise of even dead end, but also struggling with before the trip, is bound to living beyond the beating, eventually undo all our efforts back to dust. Now, in Spain, the Chinese businessmen in the garment industry, the surface looks, whether retail or wholesale, rather have the wind calm, the fact that most cash flow difficulties exist problems, except the objective of the economic crisis subjective mode of operation on the business strategies of the factors, other factors can not be ignored is the business dealings between the business with each other on long-outstanding accounts, each time using the funds owed to realize capital turnover. As a result, the business turned into cash flow between the “triangular debts.”

SEVILLA open a business in the area, fitting layout, business and other species is quite eye-catching style of the clothing store, the store has nearly three years from the opening of business, the owner for the very fact that (a pseudonym) all. The very fact that in the clothing business is good, basically less than a week coming into Madrid, a cargo, or directly call the wholesale business in Madrid models in accordance with Item name apparel goods, this very fact to be clothing, Madrid Regular service will be shown with businesses, but did not last long, the very fact that today in Madrid FUENLABRADA been unable to get goods, not the very fact that no purchase, but FUENLABRADA very fact that clothing wholesalers directly rejected the request.

Originally, Ms. Zhang in her clothing store opened at the beginning, to be able to purchase cash payment of Madrid, in accordance with the apparel industry’s unspoken rules, the first purchase of the business basically need to follow suit, then the payment of part of the purchase or other third when the need to purchase business owner to settle the bill the second time. But the very fact that the purchase and not just blindly fulfill payment obligations owed to the owner owes the results of the West home, so that the very fact that many businesses have lost faith, not willing to cooperate. The very fact of them from January 2009 to July 2009, only the money owed to Mr. Chen, a 17,000 euros, now called Miss Xiang Zhang Chen recover debts, either through cash flow very fact that the ground , urge Chen a few days grace period; or simply being on the phone is not connected, or by their friends on behalf of the pick, the room filled with other words. Until April 2010, Mr. Chen has been narrowed to know very fact that clothing scale of operation, maneuvers money to another to open a hundred stores.

When I suggested to Mr. Chen personally collect arrears SEVILLA Miss Xiang Zhang’s comments, Mr. Chen tells the heart to take this opportunity to grievances, he said the Chinese apparel industry, these are the unwritten rule, they are empathy, Even though it is difficult to go and recover the money owed back. Care of people, put ourselves in, everyone’s situation is almost similar. He is also the all day was its business to other debt, first in France, Italy, Romania and other countries of the clothing wholesalers, they are Mr. Chen partners for many years, is basically a call to sell goods over a period of time, minutes gradual payment of the purchase price, but the clothing better than food commodities, especially in fashion, over a period of seasonal and popular, even at a loss have dumped goods, coupled with depressed market conditions now, profits dropped significantly, once the business is not the vision accurate, it is inadequate. Thus creating the backlog of inventory directly affects the flow of funds to self-reasonable that. Second, the domestic garment manufacturers, Chen except in France, Italy, Romania and other countries purchase, the other is commissioned in the domestic garment factories produce clothing, and then sea or air out, pre-payment is 30% -50%, essentially , in accordance with the agreed purchase price paid in good time to rest.

Similar to Chen’s clothing wholesale shop, you first need to advance a lot of money, and sent out the payment schedule not be able to recover, invisible to the formation of a “triangular debts” in the interests of this chain, so she took a large number of businesses and other Dancing with the chains, once the party’s cash flow is a problem affecting the normal operation of the business, even businesses drop out, playing “hide and seek” game, for the same chain of other business interests, it will form a huge deficit, especially those who want to continue business operation and development, and if someone like Mr. Chen and the very fact that such payment default thing, as Mr. Chen said, the very fact that sooner or later get back the arrears, but the immediate cash flow very problematic, especially if they like the very fact that someone else owed money to take it to open their own stores, etc. So with the money owed to others to do their own business, and have the “do not cross the river themselves, others never expect to go ashore “the selfish mentality, but also in the business sense to use the other’s good faith cooperation between the two sides to further tightening, then down the money owed will naturally form a” death triangle “, is bound to restrict the sustainable development of these businesses.

Author Bio: I am a professional editor from Chinese Manufacturers, and my work is to promote a free online trade platform. http://www.qualitydress.com/ contain a great deal of information about toddler bed rails,diamond hole saw,co2 laser cutting, welcome to visit!

Category: Business Management
Keywords: toddler bed rails,diamond hole saw,co2 laser cutting,