Good-Guy
VIP Contributor
The term "credit" usually refers to purchasing products from another party with a promise or guarantee of paying for goods at a specified time. When it comes to financial matters of busines, credit is very important because usually large corporations or businesses often like to purchase products on credit and this is because they might not have cash in hand at the time of purchase. Credit can be both good and bad. It can be good because it helps to maintain and build trust between businesses and it can be bad because you may not get cash on sale on the right time. So when it comes to your business, how do you manage credit? I am sure it is much better to provide credit to the party that has been buying from you for a long time. What would you do if you give goods on credit but you yourself end up needing money?