Question

What is the advantage of extending credit to your consumers?

It reduces the risk of non-payment.
It eliminates your competition.
It establishes trust with your customers.
It improves the manufacturing process.

Answer 1

It establishes trust with your customers.

Step-by-step explanation:

Extending credit to customers may refer to the act of giving products or items on credit, allowing the customers to pay for it later. This is done by many shopkeepers or businesses to help customers.

Moreover, the act of giving things on credit shows the level of trust the shop has in its customers. This helps develop a level of loyalty and gain the customers' trust. And in that act, customers also tend to go to such shops they feel they can trust.

Thus, the correct answer is the third option.