Credit period

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Credit period is length of time allowed for payment of goods sold on account.


Definitions

According to College Accounting: A Practical Approach by Slater (13th edition)‎,

Credit period. Length of time allowed for payment of goods sold on account.

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Credit period. The length of time for which credit is extended. If the credit period is lengthened then sales will generally increase, as will accounts receivable. This will increase the firm's financing needs and possibly increase bad debt losses. A shortening of the credit period will have the opposite effect.

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