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Business Ideas Forum
Consequences of excessive credit selling in business.
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[QUOTE="TOZZIBLINKZ, post: 271524, member: 37528"] 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. [/QUOTE]
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