Advantages of trading on cash only

[cherry123]

Though selling on credit can bring more sales but selling on cash more would bring more stability for your business.

Advantages include

Having cash to restock your products

Not having excessive bad debt from customers

Having loyal customers as they always return to buy even with cash

Paying your suppliers on time as credit sales always delay having money to also pay the suppliers


Add your own

 

[Heatman]

It is not a very good business decision for you to be selling your business on only cash sales because it will cut off so many other ways you will be able to make sales especially selling your products online because there is no way you can sell on cash when selling online

 

[cherry123]

Cash here is making trade only with money paid. this is where or what I was referring to. You make sales only to those that are willing to pay you at the point of buying

 

[IB D]

When people make payments as they buy, you can easily place orders for more of the products even before the stock finishes. That's because there is cash at hand.

 

[cherry123]

That'd how it should be. when people make payments as they buy, making orders is always simple you can easily place orders for more of the products as there's is cash at hand.

 

[Bisolami]

Though selling on credit can bring more sales but selling on cash more would bring more stability for your business.

Advantages include

Having cash to restock your products

Not having excessive bad debt from customers

Having loyal customers as they always return to buy even with cash

Paying your suppliers on time as credit sales always delay having money to also pay the suppliers


Add your own

That is true
This is why Nigeria is tough because people do not have cash

 

[Springtime]

I agree that selling on cash only reduces the risk of bad debts. But if you are selling big ticket items like household appliances, furniture, you have to offer other payment options such as credit card. You need to pay a commission to the bank but you can attract more customers.

 

[uptrendfinancialsignal]

There is every possibility is of gaining huge profit in such investment

 

[Chibson]

That'd how it should be. when people make payments as they buy, making orders is always simple you can easily place orders for more of the products as there's is cash at hand.

Probably, that is one of the major reasons a lot of people do not like to give their products on credit. Because it can delay their ease of doing business.

 

[Shavkat]

When people make payments as they buy, you can easily place orders for more of the products even before the stock finishes. That's because there is cash at hand.

Indeed. It is still a good option. We do not need to worry about if the client wants to issue a postdated check for the items availed. There are times that bounce checks are the downside of having this payment option.

 

[nomad]

If you have ever run a business, you would have understood it is not possible to do business in cash always. You will have to buy on cash but you might end up selling on credits

 

[Chibson]

Probably, nowadays it is not possible to run a business totally on cash. You need to have various methods by which people can pay through online transfer and also cash.

 

[IB D]

Indeed. It is still a good option. We do not need to worry about if the client wants to issue a postdated check for the items availed. There are times that bounce checks are the downside of having this payment option.

How can people be doing checks in this days and times? And I would have to pay my way to the bank and queue when you could easily do a mobile transfer for me.

 

[Chibson]

How can people be doing checks in this days and times? And I would have to pay my way to the bank and queue when you could easily do a mobile transfer for me.

There are some people who may not be tech-savvy and they only know how to pay in cheques. So it may actually not be their fault.

 

[IB D]

There are some people who may not be tech-savvy and they only know how to pay in cheques. So it may actually not be their fault.

Anyone that is not tech savvy in this time would be completely lost as the world goes on day by day. Every one should be able to do basic things. This is not coding.

 

[Chibson]

Anyone that is not tech savvy in this time would be completely lost as the world goes on day by day. Every one should be able to do basic things. This is not coding.

Most of them are probably old people who are used to the old ways of doing things. You shouldn't blame them though.

 

[Stardom22]

I think you have outlined the mostly benefits for selling on cash basis. However you can determine how many loyal customer you have when you sell on cash. It reduces work and paper work as there is no need for keeping of customers credit reports.

 

[Chibson]

I agree, trading on cash can actually help you to evaluate how many loyal customers you have. It also reduces paperwork just like you stated.

 

[Heatman]

That is true
This is why Nigeria is tough because people do not have cash

I can remember some times last month when I was left without any cash for two weeks. It was very difficult for me to deal with.

 

[Chibson]

Staying without cash for two weeks is actually a very difficult situation. I Believe by now everything have gotten normal for you.