September 2015
Beginner
512 pages
9h 13m
English
Content preview from Model Business Letters, Emails and Other Business Documents, 7th Edition
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14
Credit and status enquiries
Reasons for credit
The main reason for buying on credit is for convenience. Basically it allows us to ‘buy now, pay later’.
- Credit enables a retailer to hold stocks and to pay for them out of the proceeds of later sales. This increases the working capital and helps to finance the business.
- Credit enables the buying public to enjoy the use of goods before they have saved the money needed to buy them.
- Credit avoids the inconvenience of separate payments each time a purchase is made.
The main reason for selling on credit is to increase profits. Credit sales not only attract new customers but also keep old customers, since people who run accounts tend to shop at the place where the account is kept, whereas cash ...
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