Such sales are what are referred to as credit sales. To understand this, let us cast our minds to various small outlets that hung on their walls “no credit today come tomorrow,” believing that tomorrow is an endless phenomenon. They are simply saying you are to pay for whatever goods or services you are receiving.
The thrust of this paper, therefore, is to examine how the system will flourish or otherwise in diminishing market situations, i.e., in situations where there is a continuous erosion in the purchasing power of the people.
Nevertheless, expectedly some conditions must be prevalent before credit sales are made at whatever level of operation.Credit facilities are granted usually after a thorough analysis of the past performance of existing customers or a reasonably determined future performance of a potential customer. In assessing the performance of a customer, the issue of mode of payment is taken into consideration in terms of payment like, say, weekly, monthly, quarterly, or periodically.
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