Question

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Overdraft, retainage, financing, payment and billing policies are associated with what aspect of business operations?    

Answer 1

It is associated with financing operations of the business. The finance department of an organization is responsible to make sure that effective payment, financing, and billing policy is being framed and followed by the company so that sales can be increased in the longer and higher level of profitability can be achieved in an efficient manner. The facility of overdraft provided by banks to the company, it is up to management to effectively use the same for the purpose of meeting out its working capital need in the longer run. Retainage is the policy of the business to pay to its suppliers in part payments, keeping a portion with the company to ensure responsible behavior from suppliers. Overall, the aim of all these policy action is to enhance the growth and profitability of the company in longer run.