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Author:Arya, A. (et al.)
Title:On the role of receivables in managing salesforce incentives
Journal:European Accounting Review
2006 : VOL. 15:3, p. 311-324
Index terms:customers
credit
debt financing
incentives
salespeople
Language:eng
Abstract:Companies sell routinely on credit (here as: cr.) in spite of conventional wisdom suggesting that offering cr. is a necessary evil when dealing with insistent cash-constrained customers. In this paper, a more positive view of trade cr. is provided. It is found that offering cr. can enhance the efficiency of incentive contracts with sales personnel. In effect, with a cr. sale, a client gets a second chance to generate enough cash.
SCIMA record nr: 263762
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