Cash sales are on average greater than credit sales as businesses give the customer incentive, such as a discount, to pay cash. This is because the business has physically received the money, which they may now use; to invest or buy inventory with. Additionally, credit sales have a degree of unreliability; the customer may not have any prospects and may never pay the money back, which is sometimes the reality.
That's exactly what they are doing and getting away with it.
Absolutely not. Anyone offering to charge more than the ordinary price for accepting a credit card should be reported to the credit company immediately. On the other hand, offering a "cash discount" is not considered the same thing, as it is no longer the "ordinary price", and it is the merchant who pays the difference (in lost profit).
The cash advance APR for this credit card is the interest rate charged when you borrow cash using your credit card, typically higher than the regular purchase APR.
A cash advance is when you borrow cash against your credit card. When you borrow cash you will usually pay a much higher interest rate than you would for purchases.
A cash advance limit is the maximum amount of cash you can withdraw from your credit card, typically lower than the credit limit. The credit limit is the total amount you can spend on purchases using the card.
That's exactly what they are doing and getting away with it.
Deductions are made primarily based on a fixed percentage of your daily Visa and MasterCard sales. The percentage is fixed, however the amount of the payment is not. The amount paid to business cash advance lender will rise and fall along with your daily card sales, giving your company greater flexibility than a traditional loan.
No, cheques received from credit customers are not classified as sales; they represent the payment for sales made on credit. When a sale is made on credit, it is recorded as revenue at the time of sale, while the receipt of the cheque is a cash inflow that reduces accounts receivable. Thus, the cheque signifies the collection of previously recognized sales revenue, rather than a new sale.
That means that there were larger purchases on credit for that period, there would be a corresponding increase in assets or expenses. Or, it could mean that oustanding payables from the previous period were not paid and are now overdue. It also means that the company has increased cash flow requirements for the following period.
The maximum depends on your credit history. If you are one that is in bankrupt or has a bad history, the time will be short. If you have a perfect credit score than the time will be greater.
A discount given to the buyer if he/she pays in cash rather than credit
inventory will decline.
Absolutely not. Anyone offering to charge more than the ordinary price for accepting a credit card should be reported to the credit company immediately. On the other hand, offering a "cash discount" is not considered the same thing, as it is no longer the "ordinary price", and it is the merchant who pays the difference (in lost profit).
The cash advance APR for this credit card is the interest rate charged when you borrow cash using your credit card, typically higher than the regular purchase APR.
A cash advance is when you borrow cash against your credit card. When you borrow cash you will usually pay a much higher interest rate than you would for purchases.
A cash advance limit is the maximum amount of cash you can withdraw from your credit card, typically lower than the credit limit. The credit limit is the total amount you can spend on purchases using the card.
Cash advance on a credit card is obtained by using the credit card in an ATM machine and taking more than the balance of your account. Then one goes into cash advance state, where one gets cash in advance.