what is the term used for describing when a customer doesn't have the money to pay for a service/product but acquires it and pays later ?
for instance, I tend to go and do grocery shopping 2/3 into a month and the store owner will write down what it is owed in a diary, my name along with the outstanding amount.
If there was an amount already outstanding , he simply will put down amount + amount
so he adds up whatever my balance is end of the month and that is what I will pay off.
In business world, what is the correct term for this practice which my store owner does ?
- 2 months ago
That he left his wallet at home on that first day.
You've heard of credit cards, which allow you to borrow from a bank and pay later. They're based on this older concept of buying from a store "on credit."
- 2 months ago
It’s buy now pay later but no one uses that system unless it’s a really small store like a private store.
- Ron AkiaLv 72 months ago
You're buying on credit. Many grocery stores used to have this service although it is not common today. When I had a neighborhood grocery store, back in the 80s, I allowed a few customers to do this although I ended up discontinuing it after a couple of them stiffed me when they moved out of state.
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You are describing buying on credit.
- Anonymous2 months ago
credit, on account, running a tab. pick one.
- BarryLv 62 months ago
A credit arrangement. Or in the UK 'on the slate'.
- Karen LLv 72 months ago
Buying on account.
- AlanLv 72 months ago
I don't think your process is a normal convention.
He is letting you pay as if you had a credit card
without you having one..
So maybe, "giving you a line of credit" , "buying on credit" or
"Running a tab" .
or even "that you are giving him an IOU(s)" (I Owe You)
"Paying on installments or an installment plan" is one term.
- Mr. SmartypantsLv 72 months ago
That's called 'credit'. It's also called 'running a tab' (when you buy the groceries you say 'Put them on my tab.') It's called 'buying on account'. Or 'Buy now, pay later'.