what are the advantages and disadvantages of a credit receipt
Answers
Answer:
What is a Credit Receipt ??
Credit Note is a note sent by a Seller to its Buyer informing her that your account with us is being 'credited' with the amount mentioned and for the reasons mentioned. The Buyer will send a Debit Note' to Seller informing the 'debiting' of Seller's account with the Buyer.
Advantages of a Credit Receipt
∆ Credit Building
∆ Convenience
∆ Rewards
∆ Benefits
∆ Currency Conversion
Disadvantages of a Credit Receipt
∆ Encouraging impulsive and unnecessary 'wanted' purchases.
∆ High-interest rates if not paid in full by the due date.
∆ Annual fees for some credit cards – can become expensive over the years.
∆ Fee charged for late payments.
The advantages and disadvantages of selling to customers on...
Competitive edge. Offering trade credit will give you a competitive edge over your business rivals.
Increase in sales. An increase in sales may happen when you start selling on credit.
Better customer loyalty.
Funding your debtor book.
Taking a credit risk with customers.
Potential for bad debts.