credit period

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Credit period

The length of time for which a firm's customer is granted credit.

Credit Period

The period of time during which a firm grants credit to a customer. At the end of the credit period, the customer is expected to have paid for all goods or services he/she has purchased.

credit period

the average number of days' (or weeks’) CREDIT granted to customers by a company, or the average time it takes for the company to collect its debts. See CREDIT CONTROL, AGE ANALYSIS PROFILE FOR DEBTORS.
References in periodicals archive ?
The industry has been so used to the 90-120 day credit periods, and over the last two years, this had even been stretched further.
Policies are represented in reducing credit periods and reducing discount ratios provided to small- and medium-sized pharmacies--which is against Article 6 of the Competition Protection Act.
Apart from what banks are likely to do the other issue that will have a bearing on offtake of goods from the UAE will be the credit periods that Iranian importers will want.
Within this framework, the bank dropped interest rate, diversified structure of short term loan programs, and extended credit periods.
CPL's operations are characterised by relatively high working capital intensity owing to the presence in tender market and the animal healthcare segment where credit periods are relatively longer.
The Meirionnydd Nant Conwy MP said: "Representatives of small firms in the Welsh construction industry have told me that the increase in credit periods - now often up to 120 days and over - imposed upon SMEs mean that their payers may not be around to make payment "Moreover there is very little that firms can do to protect themselves against the risk of payer insolvency.
In particular, they recommend reduced credit periods applicable throughout the EU and support for SME involvement in public procurement.
Considering the credits are long-term, six of the surveyed banks provide credit periods of up to 10 years with grace periods from 1 to 2 years, while one bank provides credit periods of up to 20 years.
Receivables finance lends itself well to companies who wish to offer longer credit periods because it releases the cash tied up in their unpaid invoices, so they do not have to wait until the end of the payment term to receive their money.
Managing director Brendon Kenny said his firm was paying 50% more for products, andcombined with less credit periods it was being squeezed.
This is not a measure of late payment but a reflection of the length of credit periods.
As the mills are reducing credit periods in the context of steel shortages caused by the steel demands of China it is giving very serious concern.