Consequences of excessive credit selling in business.

[TOZZIBLINKZ]

There is absolutely nothing wrong for businesses to issue credit selling to its customers and clients. And in fact credit sale in business is one of the most common way a business owner can use to win their trust and loyalty of customers and clients. Issuing or giving credit sales to your customer and client totally proves that you trust them and you are fully aware of their loyalty to pay their debts, and in turn your customers and clients would also give you their whole soul loyalty and trust because you understand their feelings and their situations. Despite the fact that credit selling in business, isn't something bad and unadvised, yes it is absolutely very mandatory that a business owner do not overdo it. Excessive credit selling of goods and services to customers and clients can totally make a business go liquidated and bankrupt and that is because the business no doubt is making sales but yet no profits and revenue to restock sold out inventories and stocks, and also over credit selling makes a business lacks revenue and funds which is mandatory to compensate and paid out business employees and workers.

Of course a business should issue out credit sales to customers and clients, but it must not overdo it. Because overdoing it makes the business unhealthy and prone to bankruptcy and liquidation. And studies and research has shown that business bankruptcy and liquidation is linked to businesses issuing out excessive rate of credit sales to its customers and clients.

 

[CALVINDOL]

There is literally nothing wrong it should be the credit selling in your business and in fact it is absolutely one way that you can win the trust and loyalty of customers and clients. But one of the things we should avoid while making credit sales in our business is that we should not overly do it because when we overly do it our business suffers the repercussions and consequences. No doubt we may be making sales but yet we will be making no profit and sometimes we may end up issuing a credit sale to a customer or a client who possibly may not have the capability of paying us back and in that case it could lead to bad debt or irrecoverable debts.

Credit selling of goods and services should be done practically unconsciously so that your business should not suffer any consequences. According to research and study is one of the reasons why businesses go bankrupt is that they issue a whole lot of credit selling of their inventories to customers and clients which is totally unadvised and wrong.

 

[Axis]

Personally I do not think that there is any theory that disputes the ability or capability of businesses to issue credit selling of their goods and services to customers and clients. Customers and clients could find themselves in a situation where they are out of financial funds but yet they need dear want and desire to be satisfied and made comfortable, in time they buy things on credit from business owners and operators of these goods and services and promised to pay back when financially equipped which is usually agreed by both the seller and the credit buyer.

For a business to issue out credit cell, is totally a good criteria for the business to win the interest and loyalty of its customers and clients. But yet it can totally be very harmful for business to indulge in over credit selling of its products and services to customers and clients. Making sales without profit all the time can totally liquidate your business, and in case were all the debt owed to you by customers and clients becomes bad and doubtful as a result of some factors like death of the debtor and insanity of the debtor, can definitely have a very critical and devastating effect on your business capability and ability to grow.

 

[Miki1]

There is absolutely nothing wrong for businesses to issue credit selling to its customers and clients. And in fact credit sale in business is one of the most common way a business owner can use to win their trust and loyalty of customers and clients. Issuing or giving credit sales to your customer and client totally proves that you trust them and you are fully aware of their loyalty to pay their debts, and in turn your customers and clients would also give you their whole soul loyalty and trust because you understand their feelings and their situations. Despite the fact that credit selling in business, isn't something bad and unadvised, yes it is absolutely very mandatory that a business owner do not overdo it. Excessive credit selling of goods and services to customers and clients can totally make a business go liquidated and bankrupt and that is because the business no doubt is making sales but yet no profits and revenue to restock sold out inventories and stocks, and also over credit selling makes a business lacks revenue and funds which is mandatory to compensate and paid out business employees and workers.

Of course a business should issue out credit sales to customers and clients, but it must not overdo it. Because overdoing it makes the business unhealthy and prone to bankruptcy and liquidation. And studies and research has shown that business bankruptcy and liquidation is linked to businesses issuing out excessive rate of credit sales to its customers and clients.

I agree with you at a point when you mentioned "loyal customers" because it's not every customer you have to credit sell to. Credit selling is not healthy for a business be it a fully grown business or small business. Over crediting will in no time run your business into bankruptcy. Let's not even talk about the unloyal once, even with the loyal customers, if they don't pay back on time that will not be helping your business. Because delay in paying for goods credited will end up causing you loses. I think you only credit to people who pays back on time so that you'll still get value for your money.