Accounting MascotAccounting Q&A

What are the disadvantages and advantage of customers buying on credit?
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submitted by anna

Mosa

Customers love to buy now and pay later so more customers will buy more, but selling on credit may cause bad debts in business. You can't always depend on people to pay you back. This is why pawn shops can stay in business. If the person doesn't pay them back, the pawn shop still gets to keep the collateral.

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