Terms of Sale Flashcards
What are five terms of Sale?
Cash
Credit
Card
Hire Purchase
Layaway Plan
What is Credit?
Credit is where customers are allowed to pay at intervals over a short- term, usually one to three months to settle outstanding balances.
What is Hire Purchase?
Hire-purchase is a long term payment plan e.g. 24 – 36 months. Interest is charged to the customer increasing the amount owed.
What is Layaway Plan?
Layaway is a purchasing method in which a consumer places a deposit on an item to “lay it away” for later pick-up when they are financially positioned to pay off the balance.
What is Consignment?
Consignment is an arrangement between a reseller (consignee) and their supplier (consignor), that allows the reseller to pay for their products after the products have been sold.
What is a Cash Discount?
A cash discount is a reduction in the price of a good that is paid for immediately or over a short period of time by a customer.
What is a Trade Discount?
Trade discount is the reduction in the price of a good given by a manufacturer or a wholesaler to a retailer to allow the retailer to make a profit or to encourage bulk buying.
