The contracting policy is a marketing policy instrument and includes all measures that can help bring about the conclusion of a purchase by structuring the monetary compensation for a purchase.
The credit policy is also attributable to the contracting policy. Its purpose is to encourage buyers to make purchases that they would not or not yet make without credit, in order to promote the company's sales. Credit policy measures are:
- Granting of supplier credits (payment will be made later)
- Granting of installment loans (purchase loans)
- Leasing as a contractual relationship between the lessor and the lessee.
Contractual policy measures
The measures of the contracting policy not only have effects on the marketing area, but also on the company's financial area. Low prices and / or high discounts, possibly combined with generous ones Terms of payment, can have an unfavorable effect on the company's liquidity if these activities do not lead to a significant increase in sales and have a positive effect on the company's earnings position.