Circumstances under which cash with order may be used

Circumstances under which cash with order may be used include:    (4mks)

1. When the business is conducted through past/mail order business
2. Where the buyer is new
3. Where the buyer’s credit worthless is in doubt
4. When the seller’s policy is not to advance credit
5. When the seller wants to avoid the high cost of debt collection.
6. When the seller needs working capital
7. When the seller want to avoid debtors’ record maintenance