Certain industries experience a significant lag between the time


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Certain industries experience a significant lag between the time their products are produced and when they are ready for market. In the wine and distilled spirits industry, for example, several years of aging must pass before the product can be sold. Producers in this industry use several techniques to finance the lag period, including sale of “futures” at a discounted price per case which reduces the time the inventory must be financed. What other businesses may use this technique or a similar technique to speed up cash flow? What are some of the risks involved? What are the benefits? What other techniques may a business use to bridge a significant period of non-revenue between production and sale? kmucha
posted a question · Jun 04, 2014 at 10:37am

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