Advantage And Disadvanteges OF Documents Security.

Advantage And Disadvanteges of Documents Security.Document security is a fundamental topic for every company, especially when it comes to digital transformation.

Advantage And Disadvanteges OF Documents Security.

  1. Easily Saleable:

In case of default, these documents can be easily sold to recover the amount.

  1. Easily Transferable:

Rights of these documents can be easily transferred without any legal formality.

  1. Easy determination of Price:

Price of these documents can be easily determined because of availability of price and quantities therein.

  1. Re-acceptability:

These documents can be presented as security to obtain loan if the banker faces financial crises.

  1. Stable Prices:

Normally these documents relate to such goods whose prices remain stable for a long time. Hence there is minimum chance of loss.

  1. Reliable:

These documents have real worth and are-reliable because of the physical existence of goods.

  1. Un-disputed Rights:

Rights of ownership of these documents are undisputed, so they are safe and risk free.


  1. Decrease in Prices:

Sometimes, the prices of goods fall incredibly which may cause problem for a bank to recover the amount of loan.

  1. Perishability of Goods:

Sometimes, the goods kept in warehouses may perish due seasonal effects or insects, which results in loss for the bank.

  1. Vague Ownership I Fraud:

Sometimes, the bank may suffer loss due to vague title of documents of goods. This can happen if trader prepares fake documents or makes changes in the particular of original documents.

  1. Chances of Theft:

There are always chances of theft of goods in the absence of good security system or dishonest workers may pilferage the goods.

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