Disadvantages of credit sale

Five disadvantages of credit sale to a seller.

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

CITATION:

https://www.atikaschool.org/business-studies-questions-and-answers/list-four-advantages-of-credit-sales-to-a-seller