Covering Business Credit

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Business Credit and Collections
Commercial Credit Management

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Doctor Credit

A customer with a 1 to 1 current ratio claims that this is common for the industry. They are a grocery store. Are they correct?

Answer: We do not want to over generalize, so the answer is: It is a plausible explanation - especially given the nature of the business which involves high inventory turnover and a cash and carry business process.

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