Credit facilities allow the customer to buy goods now and pay for them at a specified date in the future.
This service is usually offered where a product is very expensive and the consumer is unlikely to be able to afford to pay the whole price at one time. Cars are often sold with the option of paying over a number of years. Most customers will be charged interest on the money they owe for this service and so the lender makes an overall profit.
Credit may be offered for the convenience of the customer. Many newsagents who deliver to their customers may only bill them once a week. This is done in the hope of attracting extra sales
