credit period

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Credit period

The length of time for which a firm's customer is granted credit.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
Typically, trade credit periods extend from seven days to 120 days, and in case of jewelry can even be longer.
With this new reporting standard, extending of credit periods based on the circulation of post-dated cheques or massive discounting of cheques to create additional credit periods has become harder.
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.
This could mean that the initial period of hesitation should hopefully be short-lived." 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.
Under two credit periods with progressive interest charges offered by a bank, Goyal et al.
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.
Coface UK urged British businesses to improve their credit management procedures in the face of lengthening credit periods, following a web poll by the Better Payment Practice Group which found that three-quarters of UK companies believe DSO is increasing.