CREDIT IS THE BLOOD OF TRADE
It is sometimes thought that it is bad to borrow.
some people say that it is bad to be a borrower or lender because a lender may lose his or her assets (money) if borrower fails to pay while borrower could run into serious problem when the creditor comes and there is no money to pay.
In today’s business, credit is unavoidable; companies must buy on credit if they are to expand business fast. No business can afford to buy all its stocks, assets and other rights in cash at the point of executing the sale deal.
In almost the same way, companies will be able to sell more when credit purchase is allowed. Manufacturers send goods far away from customers who pay for the goods through agents, wholesalers and retailers that have enjoyed credit facilities.