EARNING CREDITORS’ TRUST AS AN OBJECTIVE AND A PREREQUISITE FOR THE FUTURE SURVIVAL OF AGRICULTURAL BUSINESSES Cover Image

СТИЦАЊЕ ПОВЕРЕЊА КОД КРЕДИТОРА KAO ЦИЉ И УСЛОВ ДАЉЕГ ОПСТАНКА ПОЉОПРИВРЕДНИХ ПРЕДУЗЕЋА
EARNING CREDITORS’ TRUST AS AN OBJECTIVE AND A PREREQUISITE FOR THE FUTURE SURVIVAL OF AGRICULTURAL BUSINESSES

Author(s): Aleksandar Vasiljević, Svetlana Lukić
Subject(s): Agriculture, Economic policy, Financial Markets
Published by: Fakultet za pravne i poslovne studije dr Latar Vrkatić
Keywords: agriculture; credit score; credit; finance;

Summary/Abstract: The primary goal of agriculture is to make profit, and the main purpose is to produce food. Economic and financial power of an agricultural manufacturer is the basic parameter that determines its market position and recognition in the circumstances of market economy and growing foreign competition. Given the current state of local agriculture, crediting has become the necessary prerequisite for agricultural businesses to operate on a regular basis. Crediting involves arrangements with suppliers, leasing companies, banks and other participants in the payments system. In the process of establishing credit arrangements with agricultural businesses, there are several important factors that determine the quality and terms of crediting. Those are: the biological feature of manufacturing and a strong influence of natural factors on manufactured products, the seasonal feature of manufacturing, slow capital turnover and an unequal feasibility of various manufacturing lines. Obtaining a high credit score is not an action, but a process in which a business creates its own image. The better market position and higher credit ratings of a business, the more favourable credit arrangements it is likely to obtain (it is less risky to invest into businesses with higher credit scores). In the process of acquiring a high credit score it is necessary to follow a number of important rules, such as: the principle of maintaining assets liquidity, the principle of maintaining the real capital value and the principle of achieving financial balance.

  • Issue Year: 2/2012
  • Issue No: 03
  • Page Range: 168-183
  • Page Count: 16
  • Language: Serbian