Credit (Sales) Definition
Credit is offered to a small business customer when the owner sells a product or service to the customer and defers payment to a later date.
Credit Extended Definition (Customer)
When small businesses offer credit to customers, it can increase sales, customer loyalty, and word-of-mouth recommendations. On the other hand, there are risks for the small business owner because payment may be delayed or never received. Also, keeping track of credit accounts is time-consuming.
Last Updated By
Christan Neff | Apr 17, 2023