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22 December, 05:54

Give 2 advantages and 2 disadvantages of selling goods on credit

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  1. 22 December, 05:55
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    Disadvantages

    It can lead to bad debts. There is no guarantee that the customers will pay back.

    Loss of income/capital. Bad debt is a loss of income as well as loss of capital you have invested in buying the goods.

    Explanation:

    Advantages

    Generally, selling on credit means the seller can charge interest. This means more money for the seller, assuming the buyer pays off the debt. It will attract more people into coming to your store. It encourages customers to increase the amount of their spending.
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