Diagram explanation

Credit is not just a two way transactions between two parties. According to the diagram

there are five ways to grant credit. First, the bank grants credit to the manufacturer,

this helps to reduce cost per unit. Once the creditor grants the manufacturer the credit

it will give them an advantage to lower the price compare to its competitor. Next, the

wholesalers and retailers, manufacturer will grant credit to them by purchasing bulk.

Again, allowing obtaining the products before paying them it gives them it increases their

sales by reducing the price. Then, the consumers, Retail credit are a type of consumer

credit, but with a more specific purpose. A retail credit line generally is a credit card for

use at one particular store. The store grants you special perks for using the credit card to

make purchases. The credit card issuer often is one of the major credit card companies

acting on behalf of the retailer, not the retailer itself. Much like any other credit card

that offers rewards, specific purchase rules often apply. Some examples of purchasing

rules are specific dates when you are allowed to use the credit card for discounted goods,

a brief introductory discount followed by a smaller discount later, and blackout dates when

rewards cannot be used.