An extra commission paid to an agent who guarantees credit sales made by him is?
Answer Details
The correct answer is "del credere". Del credere is an Italian phrase that means "of credit". In business, it is an arrangement whereby a commission is paid to an agent who guarantees the credit sales made by him. In other words, the agent becomes a guarantor of the buyer's ability to pay, and in exchange for this guarantee, the agent receives a commission. This arrangement is typically used when the buyer is not well known or has a poor credit rating. The del credere commission acts as an incentive for the agent to take on the risk of the credit sale.