One of the main advantages for the selling in credit for the businesses is that they tend to increase the prices when it comes to the giving credit sales to the buyers. This is because the extra amount covers the interest for the late payment.
What are the advantages for the selling in credit for the sellers?
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It is very useful to sellers. They can have a volume of sales, however, they have to allow credit only to good customers who have good reputations in credit.
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Personally I don't think there is any advantage in this. Yes there would definitely be high sales, but what about a situation where they do not pay? It would lead to losses in your part.
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That's a big problem if the creditor is as hard as a rock to convince to pay his credit in good faith, on time, and to fully pay according to the agreement.
Not all the customers are eligible for a credit. There must be a well laid down procedure on what could be done to cover the loan in the case whereby the creditor defaults in paying back their loans.
You would have fast sales. You would take almost the market lion share. You would make more profit when you get your payment later.
Have you forgotten that credit sales ties down your money? It is good for big businesses that have other sources to keep running their businesses smoothly.
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As a salesperson, if you can improve service to consumers with credit sales, the main benefit is that it will speed up inventory turnover, sales will increase and income will also increase. Apart from that, you can also strengthen relationships with consumers.
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Credit is good but paying in cash is the best to avoid bad creditors. We can't read the minds of the creditors. They might do 1 2 3 , and the business owner might be I'm distressed for letting a credit transaction.
you can strengthen relationships with consumers if you sell on credit and have them loyal to your business
I think that the businessmen would reap so much benefits with the higher interests charged on the items sold on credit.
Yes, you would sell at a better or increased rate and the buyers would still be willing to buy.
You'll experience rapid sales, capture a significant market share, and increase profits by receiving payments later.
That's right. This is what you would gain but you have to be careful to avoid losing big
