Crowdly

Copy of ID, three months bank statements

Proof of employment, proof of residence, all contact details

Detailed list of household income and expenses

A business views a customer who buys on credit (i.e. a debtor) as a[n]:

Asset

Income

Liability

Expense

If a customer buys from a shop using an FNB credit card, the customer now has a debt with:

All of these options

Mastercard

The shop

FNB

The disadvantages to a business of selling goods on credit include:

The business’s cashflow may be negatively affected

Bad debt – where customers don’t pay their accounts

All of these options

Having to pay for a debt collection service to collect bad debts

The disadvantages to a customer of being able to buy on credit include:

All of these options

Extra costs, such as interest and administrative fees, are included

Being able to buy goods in an emergency

Not having to save up for something

The advantages to a business of selling goods on credit include:

Customers are more loyal

All of these options

Increased sales

Less chance of the business being robbed

The advantages to a customer of being able to buy on credit include:

Goods are more expensive bought on credit

It is easier to shop without the need for carrying cash

All of these options

Can get into a bad debt situation