Functions of credits to retailer and wholesalers. - SS2 Commerce Past Questions and Answers - page 1

Customer satisfaction

Inventory acquisition

By delaying payments to suppliers

Business expansion

Cash flow management

One function of credit to retailers is that it allows them to acquire inventory without immediate payment, enabling them to stock their stores and meet customer demand.

Credit allows wholesalers to sell inventory and generate revenue before making payments to suppliers, helping them align their expenses with their sales and manage their cash flow effectively.