Selling on credit

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Selling on credit refers to a business practice where goods or services are sold to customers with an agreement to receive payment at a later date, rather than receiving immediate payment at the time of sale. Here are some key points to consider regarding selling on credit:

1. Credit Terms: When selling on credit, businesses establish credit terms that outline the conditions under which credit is extended to customers. This includes specifying the payment due date, any applicable interest or finance charges, and any discounts or incentives for early payment.

2. Credit Evaluation: Before extending credit to customers, businesses often perform a credit evaluation or assessment to determine the customer's creditworthiness. This involves reviewing the customer's credit history, _________ ____________ __ ___ __ _____ __________ ____________ _______ ________ _____ __ __________ __________.
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Degree : DIPLOMA PROGRAMMES
Course Name : Diploma in Business Process Outsourcing — Finance and Accounting
Course Code : DBPOFA
Subject Name : Order to Cash (O2C, Accounts Receivable)
Subject Code : BPOI 104
Year : 2023