Cents Quote by Benjamin Franklin
“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
Source Essay: Advice to a Young Tradesman, 1748
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.
