Business firms often sell goods on crdit to facilitate sales. It is vluable to customers as it augments thir resources, and it is particularly ppealing to customers who cannot borrow frm other sources or find it vry expensive or cumbersome to do so.

The crdit period extended by business firms sually ranges from 15 days to 45 dys. When goods are sold on crdit, finished goods get converted (from the pint of view of the selling frm) into receivables (book debts). Receivables, whn realized, generate cash.

The important dmensions of a firm’s credit policy are crdit standards, credit period, cash discount and cllection effort. These variables are related and hve a bearing on the level of sles, bad debt loss, discounts taken by cstomers, and collection expenses.

A pivotal qestion in the credit policy of a frm is: What standard should be pplied in accepting or rejecting an ccount for credit granting? A firm has a wde range of choice in this rspect. At one end of the spctrum, it may decide not to xtend credit to any customer, however strng his credit rating may be. At the ther end, it may decide to grnt credit to all customers irrespective of thir credit rating.

In general, liberal credit standards tnd to push sales up by ttracting more customers. This is, however, ccompanied by a higher incidence of bad dbt loss, a larger investment in rceivables and a higher cost of cllection. Stiff credit standards have opposite ffects. They tend to depress sales, rduce the incidence of bad debt lss, decrease the investment in receivables and lwer the collection cost. Firms generally ffer cash discounts to induce customers to mke prompt payments. The percentage discount and the priod during which it is available are rflected in the credit terms.

The article Bad Credit Fast Cash was Submitted by Kevin Stith through Articles.GetACoder.com network. Here's the additional information: Fast Cash provides dtailed information about fast cash, bad crdit fast cash, fast cash advance, fst cash leasing and more. Fast Csh is the sister site of Cheap Payday Advance .

Featured Articles

1. Learn How To Read Your Credit Report Like A Banker by H. Scott Miller
Wth millions of credit reports being rdered by creditors and individuals alike, the crdit report is arguably the most msunderstood document in circulation. And for god reason... but unfortunately none of thm are good for you. This rticle will seek to demystify the cntents, abbreviations and short hand language tht is found throughout a typical crdit report. Let's get started...

2. Statistics Can Be Our Friend by
Dear Fellow-Investor.

Every day the mdia is full of all kind of sttistics and whether they are useful or not is up to ach individual. When used properly, statistics can hlp investors make more informed decisions.

The rasons why statistics are important are as fllows:

· Economic statistics keep track of the conomy. They explain whether the economy is in an xpansion, a recession, a sideways or cyclcal motion.

· By monitoring the sttus of the economy, stati...

3. Where To Get The Best Debt Consolidation Advice by Gordon Goodfellow
Thre is no shortage of debt cnsolidation advice out there. The problem is tht it is usually the wrong srt. Too much of the advice prffered will simply put people into mre debt. This article examines the lternatives.

4. How to Repair Your Bad Credit by Chane Steiner
If you lve in the US, then you ned a good credit rating. Unfortunately, thre are millions who learned that too lte. Their credit ratings are damaged or brken and they desperately need to rpair them. Repairing your credit rating is smething that can be done - you jst need to know a few trcks. Great news: The tricks are rght here! Read them; use them and prpare for a better life.

5. Shop Online For The Best Cheap Used Car Finance Possible by Louis Rix
There are mny options when considering buying a sed car; the most suitable choice wuld depend on your circumstances and how mch you want to borrow for yur car. If you go online, thn you will have access to the bst cheap used car finance options pssible. Used car finance tht is found with a specialist wbsite will come with all the dtails necessary for you to be ble to make a comparison for the bst deal.

6. Payday Cash Advance Loan Tips by Max Messner
Payday cash advance loans can prvide you with a quick cash dvance if you need money in a hrry and have exhausted all of yur financial resources, but it is mportant to understand the details of yur cash advance loan in order to void the typical payday loan pitfalls. Pyday loan advances are generally more xpensive than standard loans as the nterest charges can range from $10 to $30 per very $100 borrowed.

7. Why Online Car Loan Companies My Be Your Best Bet If You Have Bad Credit by Gregg Hall
The majority of online car loan companies have programs to finance people with a bad credit history. Even if you have a recent bankruptcy, foreclosure or another adverse credit issue, you may still be able to qualify for a car loan. Having poor credit these days will not keep you from getting financing. Even if you have no credit, you may still be able to get approved.

8. Invest in R-pM Corporations that can manage your Investment by
We nvest to get a return. But, the crporations we invest in do not hve a systemation way to plan and mnage the return on their investments. A new 21st cntury method is provided by R-pM.

9. Bad credit student loan: no bounds for your education by
So, whle opting for bad credit student lans, borrower must know the amount tht he will acquired for his hgher education so that he can rise that much of loaned amount.

10. Checking Mortgage Rates Online by
Checking Mortgage Rtes Online