What Are the Five Factors That Entrepreneurs Need to Consider

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The Answer is -Type of Business: If the product being sold has a longer life and is higher in price (appliance,furniture),than entrepreneurs will typically have credit options.If the products are more disposable or perishable (food,clothing),the credit is typically not given to the customer by the business.-Credit Policies of Competitors: Most consumers will expect a similar policy unless the company has some advantage for the buyer.-Age and Income Level of Customers: If a customer has a steady income which is typically more stable as people age,a company will be more inclined to extend credit.-Availability of Working Capital: If limited working capital is possible such as when credit sales are given to buyers,then a business may decide to limit credit.-Economic Conditions: Recessionary times impact customers,retailers,wholesalers and lenders leading to decreased extension of credit.However,if a buyer meets the above criteria,a small business owner may offer credit to increase sales.

What Are the Five Factors That Entrepreneurs Need to Consider

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