Wednesday, 10 October 2012

In every transaction there is a risk of non-payment

When we (as a capitalist) provide a service to someone we naturally expect to be paid. In the moment after we have done the work and are waiting for our money we are in a vulnerable position. If the counterparty chooses not to pay we must then initiate force to retrieve what is ours. If we do not do this we will not be paid. So in a sense we are reliant on the opposite party being good to their word and giving us what is owed. In this sense it is a bit like begging because we are reliant on their good behaviour to get our money and we have limited options if they choose not to pay.

No comments:

Post a Comment