What is the Meaning & Definition of sale on credit

Credit sale is the type of operation in which the payment is made within the framework of the medium- or long-term, after the acquisition of the good or service.
It is called retail credit which is intended to distribute the payment of the good or service purchased in a given scheduled period between the buyer and the seller in advance, so that the first can pay for it, for example, in several months.
The term credit comes from latin and is related to the concept of trust or confidence. Thus, the idea of credit sale has to do with the ability of the seller to "trust" that the buyer will pay the corresponding. Today, anyway, the buyer is legally obligated to pay within the stipulated period. Otherwise, you can suffer the seizure of assets or properties.
Receive a loan or a credit card is currently linked to the solvency that is interpreted that the debtor has. I.e., to get one of these, an individual must in particular often have a job or a certain income and must also prove to have canceled other debts contracted in the past.
Credit sale depends on many variables and can be done in different terms of payment. In general, the buyer has thirty, sixty or ninety days to pay what you owe. Alternatively, you can do so in shares or in cash reached a date.
Buy on credit is very common, since it allows people with limited incomes access to the acquisition of goods and services that otherwise would be out of their reach. However, very often buy on credit involves payment of interests that are added to the initial amount, so that the final price of the product either may increase considerably.
Article contributed by the team of collaborators.

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