Granting credit sales is particularly difficult in a diminishing market situation because the incidence of non-payment is more prevalent. However, on the other side of the coin, granting credit sales is one of the surest ways of remaining in business when there is gloom. To balance the equation, the creditor company must mitigate against the incidence of losses…
As much as we know that Nigeria mainly operates a cash economy, this has not entirely gotten rid of the aspiration for a “consume now and pay later” system. Having said this, we can reasonably assert that allowing credit sales is a culture in business relations that cannot be wished away. How do you sell on credit in a market where the future of participants, in economic terms, is, at best, very shaky? Or should there be no credit sales in a diminishing market condition since the uncertainty of the future becomes more significant than usual? We will consider certain factors that follow credit sales to answer these questions and others that may crop up in this discourse.
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