Things to consider before selling on credit

[Alexandoy]

In my retailing business I only give a credit of 30 days for a long time client - that is one year at least in making regular purchases. We never give a credit line to new customers because we were already warned of such wrong business practice. There are customers who would intentionally not pay their debts to you.

 

[Augusta]

Hahahaha, it was very disappointing then, cos I was the chief seller for my mum, and those family and friends people keep taking credit using my mum's name and never paid back most of the items they collected on credit.

That's why we don't have to be too relaxed to family and friends when it comes to business, they can empty what we have. Business is strictly on profit any customer who isn't trusted shouldn't be given credit.

Yeah that is why people don’t do business with family and friends because they do not pay up. Some will not even want to buy on credit, they want to get everything free but forget that this is business and without money it will fail. Business owners just need to be cautious

 

[sincerem]

Yeah that is why people don’t do business with family and friends because they do not pay up. Some will not even want to buy on credit, they want to get everything free but forget that this is business and without money it will fail. Business owners just need to be cautious

Yes, business owners should be cautious about that never to fall victim. Its just too bad to see my laboured business I find so hard to make up the capital to be ruined by people I know. Instead I'll prefer not to offer them credit they can call me whatever that's business for them. We established for a simple goal of making profit.

 

[Augusta]

I think people that buy on credit should be made to always understand this, that a business is a profit making venture. Therefore, when once profit isn’t made then such becomes a charitable venture no longer a business. when once it no long business then the goal of the establishment has been defeated

 

[sincerem]

Yeah that is why people don’t do business with family and friends because they do not pay up. Some will not even want to buy on credit, they want to get everything free but forget that this is business and without money it will fail. Business owners just need to be cautious

I've learned a lot from the experience of my mother's business earlier on, that was ruined by family and friends. Now I'm running a video game business at my school, I'm not even using it for child's play with my friends cos they'll come to play free games all the time. I'm strictly on business when I'm willing I'll give free game, only when it is necessary and not often.

 

[Sherman198]

Selling on credit to customers can mostly be unavoidable as a business person. You will always meet people that may want to buy goods on credit from you. But before selling on credit to your customer, you have to consider if the customer is financially bounyant enough to pay back and again you must know where the customer stays or lives before going ahead to sell on credit to the customer.

 

[Mika]

You can sell on credit only when the customer is a loyal customer. A loyal customer means someone who has been buying from you for a long time. You can sell on credit only when the customer is known to you, for example, you know the person personally. Don't sell in credit unless you are sure that the buyer will pay back.

 

[Mataracy]

Before one started selling on credit to customer one must have get to know that customer attitude very well before given out credit to such because it might latter leads to permanent lost of the resources. The capability of the customer should also be check; that is ,may be the customer will be able to pay or not.

 

[sincerem]

Selling on credit to customers can mostly be unavoidable as a business person. You will always meet people that may want to buy goods on credit from you. But before selling on credit to your customer, you have to consider if the customer is financially bounyant enough to pay back and again you must know where the customer stays or lives before going ahead to sell on credit to the customer.

All you said should be considered and not selling to someone that isn't worthy for the credit. Their are people who are just there to ruin our business progress by taking credit of what we sell and never pay back. Even when we keep reminding them of the credit they took they'll be given excuses that isn't justifiable at all.

 

[sincerem]

Haha. That's was a huge give away blessing they received from her. Anyways it is like having a two edge sword creditors needs to always be wary of their debtors. Give mostly to the loyal customers and don't give too much out on credit. At least that might not necessarily affect the business

Hahahaha, it was very disappointing then, cos I was the chief seller for my mum, and those family and friends people keep taking credit using my mum's name and never paid back most of the items they collected on credit.

That's why we don't have to be too relaxed to family and friends when it comes to business, they can empty what we have. Business is strictly on profit any customer who isn't trusted shouldn't be given credit.

 

[Augusta]

In my retailing business I only give a credit of 30 days for a long time client - that is one year at least in making regular purchases. We never give a credit line to new customers because we were already warned of such wrong business practice. There are customers who would intentionally not pay their debts to you.

You are right they are some that comes with the real intentions not to pay. This happens mostly with family and friends, they are all after collecting and claiming family forgetting that you are running a business that needs its profit to be able to maintain itself. Credit must be given with caution

 

[Augusta]

Before one started selling on credit to customer one must have get to know that customer attitude very well before given out credit to such because it might latter leads to permanent lost of the resources. The capability of the customer should also be check; that is ,may be the customer will be able to pay or not.

Sure, this is why the customer integrity is of utmost important to the seller. You need to be sure that the buyer on credit is credit worthy. It will hurt your business badly in the long run if you make sales on credit to people that are not willing to pay

 

[btaliat]

I don't support selling on credits. People are not to be trusted. I have seen many sellers that have been recked down due to selling on credits. Let us ask ourselves some fundamental questions. What if the buyers die before the due date? Who will pay for the goods she or he bought on credit? Selling on credit is a fast way of ruining business. A seller can politely ask the buyer to buy what his money can afford at that time.

 

[Augusta]

I don't support selling on credits. People are not to be trusted. I have seen many sellers that have been recked down due to selling on credits. Let us ask ourselves some fundamental questions. What if the buyers die before the due date? Who will pay for the goods she or he bought on credit? Selling on credit is a fast way of ruining business. A seller can politely ask the buyer to buy what his money can afford at that time.

Well, in as much as I totally agree with you, but you need to know that business is risk. Same way you think in the negative also think about the positive. If you want to have a high turnover in business you need to be sell on credit but you need to also apply caution.

 

[btaliat]

Well, in as much as I totally agree with you, but you need to know that business is risk. Same way you think in the negative also think about the positive. If you want to have a high turnover in business you need to be sell on credit but you need to also apply caution.

I quite agree with you but it depends on your packaging. Do you expect supermarket to be selling on credit? And does that mean they don't sell much or they don't have turnover? What is the essence of turn over without huge money. Will you consider the money they own you as your profit? I don't support buyers selling on credit.

 

[AmaliaTG]

When once you run a business, you should be ready to meet people wanting to buy on credit. This is one of the ways to have a high level turnover, because selling only on cash basis might not cut it for the business. you might decide to sell some on credit but you need to apply caution considering the following:

• How credit-worthy the customer is, you can check out the customer store to be sure he or she can pay back
• Does the buyer make payment as at when due
• The quantity of goods to be given to each person on credit
• Can the buyer be trusted to with your products especially with large amount of products?

What’s your thought on this?

I personally don't encourage anybody in any bussines field to do his business on credit, because this is the biggest block to your success of your bussines. There is never friendships or emphathy when it comes to because you also invested alot if money in that bussines and you need to see progress and profits in your business. If you really want to grow bussines wise, never credit anybody. The right customers who want your products or services will come and will pay without credit. Be strict

 

[Setho]

These are some very important tips on how to know whether or not to sell on credit. As for my own business no matter how you check all these boxes one very important criteria is that there must be a way in which you will be able to pay the money automatically.
By automatically what I mean is that if you pass the payment deadline I can be able to approach your financial institution and get my money back.

 

[Augusta]

When once you run a business, you should be ready to meet people wanting to buy on credit. This is one of the ways to have a high level turnover, because selling only on cash basis might not cut it for the business. you might decide to sell some on credit but you need to apply caution considering the following:

• How credit-worthy the customer is, you can check out the customer store to be sure he or she can pay back
• Does the buyer make payment as at when due
• The quantity of goods to be given to each person on credit
• Can the buyer be trusted to with your products especially with large amount of products?

What’s your thought on this?

 

[Josemendez]

As for me , I don't advise that one sells on credit because such actions can affect the business negatively especially when the person didn't meet up with the payment within the stipulated time frame. However for a customer that have never demanded credit before , I might consider giving the credit to him . But in general giving out credit is not a good thing.

 

[Augusta]

That's how business owners win over customers that got their trust and that's one of the ways to increase sales. But if you give to many of the customers who aren't esteem they'll simply ruin it for you. That's what cost my mother her earlier business cos both family and friends benefitting from the free give away she offered to them. You know credit that isn't paid for turns out to be free- give away at last, LoL.

Haha. That's was a huge give away blessing they received from her. Anyways it is like having a two edge sword creditors needs to always be wary of their debtors. Give mostly to the loyal customers and don't give too much out on credit. At least that might not necessarily affect the business