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Unformatted text preview: plan is that it could potentially increase sales. The disadvantage of this type of plan is that it will have costly follow up. Another potential risk is that you could lend to people with poor credit thus losing money when they fail to repay the extended debt. (b) Natalie should not allow her customers to pay on an extended payment plan. The plan would cost Natalie a great deal if problems arose that preventing collection of the debts. Natalie would also lose a significant amount of cash due to the extended payment plan; this would hinder her ability to purchase everyday needed supplies such as supplies for baking and her office....
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- Spring '11