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.
- Easily Saleable:
In case of default, these documents can be easily sold to recover the amount.
- Easily Transferable:
Rights of these documents can be easily transferred without any legal formality.
- Easy determination of Price:
Price of these documents can be easily determined because of availability of price and quantities therein.
- Re-acceptability:
These documents can be presented as security to obtain loan if the banker faces financial crises.
- Stable Prices:
Normally these documents relate to such goods whose prices remain stable for a long time. Hence there is minimum chance of loss.
- Reliable:
These documents have real worth and are-reliable because of the physical existence of goods.
- Un-disputed Rights:
Rights of ownership of these documents are undisputed, so they are safe and risk free.
[DISADVANTAGES]
- Decrease in Prices:
Sometimes, the prices of goods fall incredibly which may cause problem for a bank to recover the amount of loan.
- Perishability of Goods:
Sometimes, the goods kept in warehouses may perish due seasonal effects or insects, which results in loss for the bank.
- 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.
- 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.
