I feel selling out to customers on credit is not the best, it's better to look in another means to keep them. Because some of them may not pay back
Is credit facility a good idea in business?
- Thread starter Johnson2468
- Start date
It is never easy to trust people on credit. Since most credit facilities don't police customers, they cannot just base the requirements on how they (the borrowers) look.
Credit facilities for newly established businesses is not good. You cannot say just because you wanted to satisfy and keep customers at the detriment of the business. Gice credit facility only where it won't affect the running of business.
Offering credit to customers can be a useful business strategy, as it allows customers to make purchases that they may not otherwise be able to afford upfront. This can help businesses increase sales and expand their customer base. However, offering credit also carries risks, as it can be challenging to manage and there is always the possibility that customers will default on their payments. Therefore, it is important for businesses to carefully consider whether offering credit is a good idea for their particular business model and to have processes in place to manage these risks.
But a lot of business strive on credit sales you need to just know people you sell on credit to.
The down side of this type of business is when the debtor can't pay anymore. Or worst, when the debtor became a scammer.
When it comes to money, be careful who you trust. These customers you are trying to keep by giving your goods and services on credit might still end up not paying you back in return but go to other places to get what they want.
It is a very common practice for trading companies to offer credit terms to customers. Trading businesses not doing that will not find any customers. Businesses can buy credit insurance to protect the risk of buyers not making payment on time.
Having a credit line facility is good for a business especially if you want to expand your business. Not all business is given a credit facility, one must have the track record and with good financial background before one can avail.
Credit facilities is a very good idea but it could make you lose huge amount of money if care is not taken.
Due to this pandemic thing, the credit companies are starting to pop out online. Some people tried to ask money from them and they have bad feedbacks availing the offers of these companies.
