Credit trading involves a business providing a line of credit to its customers when purchasing goods or seeking services. While credit buying is considered less formal when compared to bank loans, it also comes with terms and conditions that the buyer agrees to follow. This includes penalties in the case of late payments as well as interest. This arrangement is mutually beneficial to both the buyer and the seller. While the businesses use this payment option to drive sales, customers on the other hand have access to acquire different assets even when they do not have the cash at hand. Here are some reasons to choose credit trading.
It helps you to get up and running
Purchasing items on credit can be useful especially when you are looking for assets but do not have the cash to pay upfront. If you are running a new business and you can’t secure loans to fund the purchase of assets, you can opt for credit buying to acquire them through credit buying. If you relocated or recently purchased a home and you do not have all the cash to purchase household furniture, credit buying will be the best bet.
Easy to arrange
Unlike in the case of bank loans or other financing options, credit buying is easy to arrange. When one has a good credit history and documents to prove that they are able to make regular payments, credit trading is easy to arrange and maintain. The formal arrangements and paperwork are few and easy to handle and complete.
Helps fuel business growth
Businesses that opt to utilize trade credit can also expect growth. Acquiring assets even when you do not have all the cash is equivalent to accessing working capital at no cost. You will benefit from the asset while looking for the money to pay for it.
At Kenya Credit Traders Limited, we have a wide variety of products you can purchase for your home or business. We accept hire purchases as a payment method. Follow us on Facebook, Kenya Credit Traders to learn the latest deals and offers.