Better to lose goodwill than gain bad debts

Abstract

Although European companies often allow trade debts to stand for very long periods — notably Italy with an average credit period of 109 days — they often charge a fiat rate of interest on outstanding debts. Plans to introduce statutory interest in this country are still under discussion, but companies are reluctant to enforce their existing right to include credit interest in their contract of sale, presumably through fear of losing goodwill.

Citation

(1980), "Better to lose goodwill than gain bad debts", Industrial Management & Data Systems, Vol. 80 No. 11, pp. 5-5. https://doi.org/10.1108/eb057129