It is a contract of sale where by the buyer takes possession or ownership of the good after an agreement to pay the price latter or installment. If the buyer fails to pay seller can sue him for the money but can not take back the good.

Advantages of credit sales

• It requires profit
• Increase standard of living
• Encourages purchase
• Reduce the risk of holding stocks

Disadvantages

• Lead to court action
• Capital can be tied down
• Consumers may be tempted to buy more

REASONS FOR GIVING CREDIT

• To gain competitive edge
• To earned additional money
• To sell very expensive items

   It is a contract of sale where by the buyer takes possession or ownership of the good after an agreement to pay the price latter or installment. If the buyer fails to pay seller can sue him for the money but can not take back the good.

  Advantages of credit sales

• It requires profit
• Increase standard of living
• Encourages purchase
• Reduce the risk of holding stocks

• Disadvantages

• Lead to court action
• Capital can be tied down
• Consumers may be tempted to buy more

• REASONS FOR GIVING CREDIT

• To gain competitive edge
• To earned additional money
• To sell very expensive items

   It is a contract of sale where by the buyer takes possession or ownership of the good after an agreement to pay the price latter or installment. If the buyer fails to pay seller can sue him for the money but can not take back the good.

  Advantages of credit sales

• It requires profit
• Increase standard of living
• Encourages purchase
• Reduce the risk of holding stocks

• Disadvantages

• Lead to court action
• Capital can be tied down
• Consumers may be tempted to buy more

• REASONS FOR GIVING CREDIT

• To gain competitive edge
• To earned additional money
• To sell very expensive items

   It is a contract of sale where by the buyer takes possession or ownership of the good after an agreement to pay the price latter or installment. If the buyer fails to pay seller can sue him for the money but can not take back the good.

  Advantages of credit sales

• It requires profit
• Increase standard of living
• Encourages purchase
• Reduce the risk of holding stocks

• Disadvantages

• Lead to court action
• Capital can be tied down
• Consumers may be tempted to buy more

• REASONS FOR GIVING CREDIT

• To gain competitive edge
• To earned additional money
• To sell very expensive items