Get High-quality written work Help from our Professionals _FIN442 SummaryDescribe some techniques that fall under this concept that could help you to deal with a price increase. See URL: Investopedia.com. (n.d.) Hedge. Retrieved December 12 2016 from http://www.investopedia.com/terms/h/hedge.asp Define a priority lender and why he is entitled to receive payment ahead of other creditors such as common shareholders. Numerous business enterprises stretch their payables beyond predominant credit terms. The advantage of extending one’s payable is that it reduces the time a company needs to return to its creditors. It is also imperative to remember that companies that operate on an invoice can reduce the number of days paid or offer quick payment reductions (Valipour Moradi & Farsi 2012). You may continue to use apps for faster and easier transfers for example automated payment and mobile payments. Advanced technologies for payment management would also support this process. Companies may either settle exchanges of electronic bills or use the direct transfers to raise payable costs. However there are various disadvantages to this strategy. First the possibility that financial reports and in specific cash flow statements is significantly skewed by an arbitrary rise in payable products and the consequent increase in organizational cash flow is one of the main consequences for accountants. Following financial and accounting cases analysts and policymakers have a far more heeded approach to cash flow reports fraud particularly expanding payables to boost the cash flow statement. Another disadvantage of this strategy is the fact that it risks the loss of key assets. There are unintended effects including as vendors bear the lack of sales. Because they have not been paid on time some sellers might still supply their goods but proceed to look for new and more reliable customers to prevent insufficient cash flow. Some can lose main suppliers or their properties lessening their ability to produce the merchandise on schedule or reducing the quality of items. I may not have interacted with this strategy’s results but I am looking forward to assessing how it may work as a source of instantaneous credit. ReferenceValipour H. Moradi J. & Farsi F. D. (2012). The impact of company characteristics on working capital management. Journal of Applied Finance and Banking 2(1) 105.