He that sells upon Credit expects to lose 5 per Cent. By…
“He that sells upon Credit expects to lose 5 per Cent. By bad Debts; therefore he charges, on all he sells upon Credit, an Advance that shall make up that Deficiency.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Credit sales carry risk of loss, so sellers add a surcharge to cover expected bad debts.
In simple terms: Credit costs extra due to risk.
Key Takeaway
Add a margin to offset potential losses.
Themes
finance
risk
pricing
business
ethics
Mood
cautious
analytical
pragmatic
Type
advice
financial
business
When to use this quote
- selling on credit
- pricing strategy
- financial planning
- risk assessment
- loan underwriting
Key Concepts
risk management
cost accounting
credit policy
Questions to Reflect On
- How do you balance risk protection with customer fairness?
- When is it appropriate to pass risk costs to buyers?
A Different Perspective
Surcharge may deter customers or be illegal in some jurisdictions.