Definition of sale on credit

Selling to credit is the type of operation in which the pay is carried out in the medium or long-term framework, after the acquisition of the good or service.

It is called a credit sale to the one that has the purpose to distribute the payment of the good or service acquired in a certain period established in advance between the buyer and the seller, so that the former can amortize it, for example, in several months.

The term credit comes from Latin and is related to the concept of trusting or having confidence. Thus, the idea of ​​sale on credit has to do with the seller's ability to "trust" that the buyer will pay the corresponding amount. Nowadays, however, the buyer is legally obliged to pay within the stipulated period. Otherwise, he may be lien on his assets.

Receiving a credit or a credit card is linked in the present with the solvency that the debtor is interpreted to have. That is, to obtain one of those, a particular individual must often possess a

job or a certain income and must also prove having canceled other debts contracted in the past.

The sale on credit depends on many variables and can be done in different payment terms. In general, the buyer has a period of thirty, sixty or ninety days to pay what he owes. Or, you can do it in installments or in cash reached a date.

Buying on credit is very common, since it allows people with income limited access to the acquisition of goods and services that would otherwise be outside their scope. However, very often buying on credit involves the payment of interest that is added to the initial amount, so that the final price of the product can either increase considerably.

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