Question
Point Value: 1 Tillers-R-Us (TRU) is a Montana-based US manufacturer of soil tillage equipment that it sells through its international network of distributors. The company
Point Value: 1 Tillers-R-Us (TRU) is a Montana-based US manufacturer of soil tillage equipment that it sells through its international network of distributors. The company was selling only a few pieces per year in each of its international markets and distributors typically paid for the product in full by the time it reached their warehouses. Recently, many of TRU's international partners voiced concerns that the significant growth in sales of TRU equipment worldwide put significant pressures on the distributors for inventory financing. A typical sales cycle for agricultural equipment is 12-18 months. The distributors have asked TRU to help them address the situation in order to allow them to expand sales. Which strategy would best address this situation while minimizing payment risk to the TRU?
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