what is the benefit of credit for businesses and individuals?

Question

Question

business finance

Answer 1

Answer #1

Benefits of Credit for Business:

Gives the customers a chance to buy products on credit where this in turn will change into account's receivable.
Credit line helps business to expand it's horizons and sales revenue revs up.
Now a day's, Banks are offering discounts and extended credit duration to enhance the bank to business relationship where the credit here plays a significant role in boosting the business sales.
Greater means of convenience to access the funds at quicker pace for the customers.

Benefits of Credit for Individuals:

Credit can allow an individual to have money that he is yet to earn in the future with an additional cost, this is like having money by paying additional interest money. In times of emergency, this tool is helpful.
To have the luxury of a product, one may opt for both Cash and credit, and credit can help ease such problem of having less of an amount.
Credit allows a smooth way of trade operations if the individual is involved in any of the smaller business operations.

Answer 2

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