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Why would an organization want to know what there Net Credit Position is?

Why would an organization want to know what there Net Credit Position is?


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Net credit position is the difference between the receivables and payables.Organisation's net credit position shows its liquidity position.Every organization want to know their net credit position to assess their liquidity position and to know there financial health.If the organisation is financially strong,it can borrow more funds to expand its business.Better liquidity position earns faith of stakeholders and improve the market value of organisaation.

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