normally companies dont have any cash, they relay on bank credits (always) - lets do an example, imagine you are working for a little company (putting briks) that works for a qatari company building flats.
Qataris normally pay (lets say for instance at 90 days).
You make a work, company invoice the qataris, at the end of the month you want your salary, but your company has no money (not yet) so they go to bank, and they got a loan to get cash, only for 90 days, until qatari money is in their pocket... lets say 2% of interest for the money, not a big deal... they pay you, after 90 days they receive the money, qataris are happy, bank is happy, everyone is happy.
With the money you receive, you pay your rent, that is the building flats qatari company, for instance...
That was the past...
Nowadays...
You put the bricks and at the end of the month you ask for your salary, your company goes to bank and they say: "mmm! we dont enough money to let you... come tomorrow"
So your company cannot pay you (or pay the bricks to continue working next month) so you lose your job, so your not going to pay the rent so the qatari company cannot get money to pay your company next month either, you have lost your job, your company goes to close, and the bank is losing the bussiness because they cannot make money with the interest they charge the companies for the loans...
All this above is an extreme simplification.
###########################
Not so extreme.
If you have money in the bank you will notice that banks are going to pay more and more for the deposits because they are desperately looking for money. If you have money in your pocket these are good days for you.
If you have variable interest loans (typical mortgage) or you need a loan to change car. You will notice that banks are asking for more and more interest to let you money. If you dont have money in your pocket these are tought days for you.
Normally your company has no money, so dont ask for a salary rise these days.
Normally the services companies in general have no money, so you will notice that prices will rise for them to afford the loans that they have...
#######################3
Wow! Too long and very unclear...
sorry its too early in the morning for me...
War looking for peace,
is like fornication looking for virginity.
There is no cash in the market my friend...
normally companies dont have any cash, they relay on bank credits (always) - lets do an example, imagine you are working for a little company (putting briks) that works for a qatari company building flats.
Qataris normally pay (lets say for instance at 90 days).
You make a work, company invoice the qataris, at the end of the month you want your salary, but your company has no money (not yet) so they go to bank, and they got a loan to get cash, only for 90 days, until qatari money is in their pocket... lets say 2% of interest for the money, not a big deal... they pay you, after 90 days they receive the money, qataris are happy, bank is happy, everyone is happy.
With the money you receive, you pay your rent, that is the building flats qatari company, for instance...
That was the past...
Nowadays...
You put the bricks and at the end of the month you ask for your salary, your company goes to bank and they say: "mmm! we dont enough money to let you... come tomorrow"
So your company cannot pay you (or pay the bricks to continue working next month) so you lose your job, so your not going to pay the rent so the qatari company cannot get money to pay your company next month either, you have lost your job, your company goes to close, and the bank is losing the bussiness because they cannot make money with the interest they charge the companies for the loans...
All this above is an extreme simplification.
###########################
Not so extreme.
If you have money in the bank you will notice that banks are going to pay more and more for the deposits because they are desperately looking for money. If you have money in your pocket these are good days for you.
If you have variable interest loans (typical mortgage) or you need a loan to change car. You will notice that banks are asking for more and more interest to let you money. If you dont have money in your pocket these are tought days for you.
Normally your company has no money, so dont ask for a salary rise these days.
Normally the services companies in general have no money, so you will notice that prices will rise for them to afford the loans that they have...
#######################3
Wow! Too long and very unclear...
sorry its too early in the morning for me...
War looking for peace,
is like fornication looking for virginity.