How can credit be managed in a business and not affect capital?

[Etini]

As business people, debts are inevitable. People would always want to buy your products sometimes and they don't have the money to pay at hand. It even gets more serious when it is a regular customer. How do you handle debts without them affecting your business capital? Sometimes, people owe you and you don't have sufficient funds to order again or produce.

There was a time on my farm when I had so much debt that I couldn't even have money to buy feeds for my birds. How can a business person work around giving credit without it affecting further sales?

I met a lady that was once in the food business. I asked her why she is not doing the business again. She told me that people were owing her too much and she couldn't meet up again. How do we strike a balance in giving out credit as business people?

 

[Augusta]

For me I always believed that business shouldn't be on credit sales because this is one act that kills a business but if you can't help it then you should limit your credit giving to only trust worthy customers. You should give. out only minimal credit facilities to customers

Make sure you give them date they can start paying on installments basis.You should give them either cash or trade discount to push them to want to pay as quickly as they can.