SECTION D - TRADING DEBTS

(a) Is it usual in this economy for suppliers of goods or services to supply those goods or services to corporations on credit?

Yes, it is common for suppliers to supply on credit.

 

(b) If so, what would be the average credit period of time?

Although this would depend on a number of factors such as creditworthiness, course of dealing, etc., generally the credit period is approximately 60 to 90 days.

 

(c) Is it possible and/or usual in this economy for a supplier to require security over property of the corporation for the supply of goods or services?

Although it is possible, suppliers do not ordinarily request security over the corporation's property.

 

(d) If so, is the form of supply known as 'retention of title' practised and recognised in this economy and is it enforced?

The concept similar to "retention of title" exists. However, it is not commonly used.