Disadvantages of credit sale
Five disadvantages of credit sale to a seller.
- Consumers may avoid coming back to buy for fear of being asked to pay debts thus losing customers.
- It may lead to a bad relationship between the seller and buyer in the debt is unsettled within the agreed time frame.
- Delay in repaying can inconvenience the seller in restocking.
- If a debt goes unpaid, the seller counts losses.
- It is difficult to document smaller credits that involve little money.
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