Do you think credit is good in your business? Is there something beneficial from them? What could those creditors bring good to your business? For me, credit is good because not all are bad creditors. We have to remember that creditors bring money to our business. Of course, they will pay because their reputations will be at stake and they may defame themselves and no one to believe them anymore if apply credit to other companies. They will also apply for credit without a corresponding collateral. Others leave their ATM debit cards and valuable items. For the bad creditors, they will be the risks in business because the capital might be used up because of the unpaid items. Business owners must choose who to approve for credit.
Is credit good in business?
- Thread starter Starmix
- Start date
In my personal experience when I started giving credit to my customers some of them started showing as they usually forget things and they forget my money. But remember to get items. So I decided to not make it practice and give it in rare genuine cases.
Take it or live it you will regret at the end of the day,too much credit can bring down your business as for the business am operating now I don't allow credit because it's bring too much customer that can cause down fall of your business
- Thread starter
- #5
Credit is good but not successive because the busiess center also needs cash to roll out the business. And there is also a possibility that they will abuse and may only be good at first but in the long run it may take years to complete their payment.
Yeah having some credit system on our business have some good sited and it will bring more customers and customers will trust us, but some times giving some credit to the customers have some bad things and it will lead us to lose our business and lose money,
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- #8
We can extend a credit to a good customer but not all the time. It could be once or twice to help the creditor build his own business through the profit of the products he purchased through credit.
Yeah extending the credit service for loyal and trusted customers will help us and also the customers, but i know small business owners who lost their business from credit service.
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- #10
For a small business, it is not good to entertain credit. The sales of his business are rolled out from it and if a creditor does not pay on time, business failure will happen. The business owner must be firmed.
True for a small business owner allowing credit is bit harder than we think, and since they import products with the money they get from selling goods and since they don't have other budgets it will be hard.
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- #12
It will be crucial if the creditor turned out to be s bad creditor. The business owner will be forced to do drastic action like reporting the matter to the police the creditor could be charged with estafa.
The thing is most of stores in my country don't have any respite or cards they give when you buy them somethings and even if they want to repot to the police they don't have any evidence and everything is maid with trust.
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- #14
The evidence is the receipt. There is always receipt and before you release the items, the creditor must sign a compromise agreement. Business owners are always wise in terms of credit.
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Well said, it's better not to start it at the very beginning and stick to this policy than starting it then later decide to stop. Most people would not understand. So as you plan on not allowing it from the beginning, it is the best choice.
The only prof that a business owner or a shop owner have is the receipt, and they have to give receipt for their customers in order to get a prof,
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- #17
A receipt is required by the internal revenue, which is the basis for tax payment of the business or company. Others don't declare the right income and its reduced by their accountants. It is good to claim for the receipt to help the government.
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- #19
That's the usual no credit in a business center. Those who allow might submit a worthy collateral or ATM surrendered to the business owner for a monthly payment. The owner will just get the balance or provide the business owner a cross check.
