Del-credere commission is an?

Assessment: WAEC SSCE - Commerce - 1995 (Objective) Subject: Commerce

Question 1 Report

Del-credere commission is an?
Answer Details
Del-credere commission is an extra allowance paid by a principal to a commission agent for guaranteeing the recovery of debts from customers. In other words, it is an incentive paid to a commission agent who is willing to take on the risk of bad debts from the customers to whom they have sold goods. This commission is paid to ensure that the agent takes the necessary steps to recover the debt from the customer, even if it means going to court. The del-credere commission is usually a percentage of the total sales and is paid in addition to the normal commission paid to the agent.

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