Mastergp
Verified member
Credit occurs when a seller grants permission to a buyer to take possession and enjoy a commodity with a promise to pay in future.
It is the process by which goods and services are transferred to the buyer from the seller for his use and enjoyment without value being given immediately.
The credit worthiness of the buyer must be taken into consideration before granting credit so that it will not lead to bad debts. This can be obtained through the status enquiry agency. Before granting credit, there must be a contractual agreement between the seller and buyer, the use of credit in transactions has increased tremendously in recent times. Despite shortcomings, credit systems of transaction has paged prominent roles in facilitating trading activities.
In most area many sellers gives credit to buyers that they are familiar with or buys from them regularly at most occasion they may give credit to family members and close friends but can still end badly when this ones fail to pay back WS hat they took.
It is the process by which goods and services are transferred to the buyer from the seller for his use and enjoyment without value being given immediately.
The credit worthiness of the buyer must be taken into consideration before granting credit so that it will not lead to bad debts. This can be obtained through the status enquiry agency. Before granting credit, there must be a contractual agreement between the seller and buyer, the use of credit in transactions has increased tremendously in recent times. Despite shortcomings, credit systems of transaction has paged prominent roles in facilitating trading activities.
In most area many sellers gives credit to buyers that they are familiar with or buys from them regularly at most occasion they may give credit to family members and close friends but can still end badly when this ones fail to pay back WS hat they took.
