How do you think a business that sells with a credit system is good?

[astutimeliana723]

In my country many businesses sell their products with a credit system, usually houses, cars, motorbikes, furniture, etc. There are even some businesses that don't allow customers to buy them with a cash system. The reason underlying this is that they will get more profit if they sell it with a credit system. Even though not all buyers can pay their installments smoothly and on time. What do you think?

 

[cherry123]

A lot of businesses here do credit sales but I think it is mostly for their trust worthy customers. I agree you that sellers will get more profit if they sell on credit system.

 

[astutimeliana723]

A lot of businesses here do credit sales but I think it is mostly for their trust worthy customers. I agree you that sellers will get more profit if they sell on credit system.

That's right, there are several administrative requirements that must be met before giving credit, to ensure that the buyer in question is worthy of being given credit. True, they benefit more from the interest charged on monthly installments.

 

[Stardom22]

The businesses that sells through credit bases in terms of installments, usually make higher profits than those selling on cash. This is because they sell at relatively higher prices compared to the normal prices.

 

[Starmix]

Credit is good for a big business telling big things like cars. This way, they can profit more from the payment surcharges monthly. However, there are buyers who like to buy in cash.

 

[astutimeliana723]

Credit is good for a big business telling big things like cars. This way, they can profit more from the payment surcharges monthly. However, there are buyers who like to buy in cash.

That's right, I also prefer to buy in cash, so I don't bother thinking about the installments every month. LOL However, there are several companies that make it difficult or even not allow buyers who want to buy in cash, they always give priority to those who buy on credit.

 

[Starmix]

That's right, I also prefer to buy in cash, so I don't bother thinking about the installments every month. LOL However, there are several companies that make it difficult or even not allow buyers who want to buy in cash, they always give priority to those who buy on credit.

I also purchase through credit the first time. I purchased a laptop six months to pay hehehe. And the feeling was jumpy jumpy.

 

[Heatman]

It is going to be very difficult for me to sell any of my poultry or fish farming products on credit to anyone because it is not a business that can survive on credit system.

 

[cherry123]

This is very important before giving credit, to anyone it is to ensure that the buyer in question is worthy of being given credit. This will help you get pass criminal minded people

 

[Etini Willie]

Credit sales help to sell out stock faster. That is because the customers would be willing to buy more and faster. It is mainly practiced in a B2B situation.

 

[Springtime]

I think companies can get more customers if they accept credit card. I personally prefer to use credit card for purchases as I can get cash back or reward points.

 

[Etini Willie]

A credit system allows for more profit. A business can sell at a higher price and the consumer won't notice because he or she is not paying immediately.

 

[cherry123]

Yes , Credit sales help sellers to sell out stock faster. this is why one have to do it right though customers would be willing to buy more and faster.

 

[Etini Willie]

Credit sales is very risky. I personally can't do business with credit sales. It doesn't work in my part of the world. It has to be with someone that you know his or her financial standing and you are sure he or she can pay..

 

[eldavis]

It depends on the business though, i have been to a phone shop where i was told you can pick a phone and pay in installments. This was actually my first time going to the shop.

 

[aovurevu]

In my country many businesses sell their products with a credit system, usually houses, cars, motorbikes, furniture, etc. There are even some businesses that don't allow customers to buy them with a cash system. The reason underlying this is that they will get more profit if they sell it with a credit system. Even though not all buyers can pay their installments smoothly and on time. What do you think?

Well, I don't like buying stuff on credit, I prefer buying it when I have the purchasing power to do so , I see credit as a debt on my path and won't feel okay until I pay off, but this may serve as an assistance to those that can't afford it at a go and needed it urgently.

 

[cherry123]

Credit selling system has both the positive and the negative the advantage is that businesses that sells through credit bases make higher profits than those selling on cash. so it's better for them

 

[Passiveearner]

Credit selling system has both the positive and the negative the advantage is that businesses that sells through credit bases make higher profits than those selling on cash. so it's better for them

There are many businesses that require you to sell them products on credit because they may not have cash in order to pay at the spot. So, offering credit is the only choice for many business.

 

[astutimeliana723]

Well, I don't like buying stuff on credit, I prefer buying it when I have the purchasing power to do so , I see credit as a debt on my path and won't feel okay until I pay off, but this may serve as an assistance to those that can't afford it at a go and needed it urgently.

Yes, that's right, I agree with you, I also don't like debt, it's better for me to save up and buy it in cash. Debt doesn't make me comfortable until I can pay it off. There are always pluses and minuses for the credit system business. As for me, I prefer business without credit services.

 

[Sophie]

I don't think it's wise for a business to operate a credit system fully
That's very risky sure customers would patronize you but getting the money for me I feel like is a lot of work