Wednesday, May 21, 2014

Why does a business have creditors?

Why does a business have creditors?
A creditor may supply stock (parts, materials, etc) to a business.This is usually on a credit period of 30 or 90 days before thebusiness is expected to pay for the stock. This credit period willallow a business to, hopefully, produce and sell finished goods,and so be able to pay its creditors on time.

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