ABSTRACT
We have already established, in Chapters 1 and 2, that there are both benefits and costs for the seller in granting credit. No doubt, sellers would be tickled pink if all sales were for cash only, if only because, by definition, the sale is only a complete sale when it has been paid for. In reality, however, trade needs credit to stimulate sales growth, and credit enables sales to be made which would not otherwise be possible. Offering time to pay adds value to the relationship between seller and buyer. It promotes customer loyalty and encourages repeat business.
