Credit Policy Delay

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Credit Policy Delay

The period between the sale of goods for a credit and the payment for those goods. This lag is determined largely by the selling firm's credit policy.

Credit Policy Delay

The time between the sale of a good or service on credit and the receipt of payment. The length of the credit policy delay depends on a number of factors, such as the buyer's creditworthiness and the seller's policy on credit sales. See also: Accounts receivable.