1.Risk taking.                                                                                                                            Distributor has to give credit in market without any   proper legal agreement, hence high risk is involved in this process. Also we have discussed that,   in FMCG there are large number of buyers and sellers, in this case doing agreement with the buyer is not possible. Also in FMCG distributor has to acquire some new customer every month and need to give them credit. He does not   know the person whom he is offering credit.                                                                                                                   2. Small transaction value .                                                                                                     In FMCG , distributor has to do a very small amount of transaction . Particularly in retail market, the sale value may be Rs300 . Even some times distributor has to give credit