Would you extend trade credit to your customers? (do not discuss credit card payments, but rather, direct credit to your customers. ) why or why not?

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04-08-2022
Business

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Would you extend trade credit to your customers? (do not discuss credit card payments, but rather, direct credit to your customers. ) why or why not?

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sakshigupta4990 sakshigupta4990 · Answer 1 · 2022-08-10T10:25:54-04:00

Expanding your trade credit can increase your sales volume. More time to checkout increases a customer's purchasing power and the number of products they purchase extends trade credit to your customers.

Giving your customers extra time to pay their bills can bring many benefits to your small business. Offering credit to customers is a way to increase sales and provides consumers with payment flexibility. While there are benefits to extending a loan, there are also issues to be aware of.

Generate more sales. The number one reason to consider financing your customers is that it makes your business more attractive to customers. People often want to buy something if they can buy it on credit.

Credit means the right to defer or incur a debt and defer payment of a debt offered or granted primarily for personal, family, or household purposes.

Learn more about credit at

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