A trader who gives credit stands to enjoy increased sales. When a trader offers credit to their customers, they allow them to purchase goods or services and pay for them at a later date. This can be an attractive option for customers who may not have the necessary funds at the time of purchase.
By offering credit, the trader can attract more customers who may not have been able to purchase their goods or services otherwise. This can lead to increased sales, as more people are now able to make purchases. Additionally, offering credit can help build customer loyalty, as customers appreciate the flexibility of being able to make purchases without having to pay immediately.
While offering credit may come with some risks, such as the possibility of customers defaulting on payments, it can also provide a competitive advantage for the trader. As a result of increased sales and customer loyalty, the trader may be able to generate higher profits in the long run.
Therefore, a trader who gives credit stands to enjoy increased sales and potential for higher profits, which can be beneficial for their business.