Is credit good in business?

[Passiveearner]

I think it depends on the situation and circumstance. If you are selling food and you have a certain neighbor so hungry, it will be inhuman of us if disallow the hungry neighbor to buy in credit. But if it always happens and no single payment is made, that neighbor needs discipline by refusing to purchase food on credit. For a big sore, unless that customer already built good friendly relations, a good creditor, no reason to refuse, so it is case to case. What about your observation in your community?

I think that credit could be good for business because this helps you to secure more and more clients in the first place. This makes it feel that you trust your clients.

 

[astutimeliana723]

Credit is a good business and many buyers, but we also need cash. In my country many stories of businesses being destroyed due to customer debts piling up and not being paid. I think it's better to apply a cash system if there is goods there is money.

 

[riberet19]

Credit can be good for business as long as you know how to handle it and do not get stuck in debt because of it, one must know how to manage their finances within the business so that this does not happen.

 

[Passiveearner]

There are companies good creditors for example bank loan and stores for supplies. They're good standing creditors.

Unfortunately, there are many people who tend to take advantage of people and business who offer credit. This is why many companies may no longer offer credit at all to customers.

 

[Bisolami]

Indeed @Bisolami giving credit to customers are not for business, if we give customers that they will drag us into something bad, been there done that, and still i dont get my money until right now (its a lot of money for me), Always say NO to credit even the customers are someone we know

And this is why we need to be outspoken so that our customers will know our stand and will not push us to do something that we will not love to do

 

[Starmix]

Credit is good in business if those creditors are teachers who receive their pay regularly and dine in the resto regularly, There is no reason to refuse them if that is the business you operate.

 

[Chibson]

So much of credit in a business will surely destroy and make the business go bankrupt so it is something that every business owner should avoid

Probably, there are many businesses have come across that always make it clear that they are not selling their product on credit. If you want to buy you should pay money before taking any product.

 

[Bisolami]

Probably, there are many businesses have come across that always make it clear that they are not selling their product on credit. If you want to buy you should pay money before taking any product.

Well, I think a business person cannot stay without selling his goods on credit but he should make sure that it is not too much

 

[Starmix]

I think that credit could be good for business because this helps you to secure more and more clients in the first place. This makes it feel that you trust your clients.

But credit is not allowed in my milk tea business. Customers are all strangers. They're coming and going to the mall.

 

[Chibson]

Well, I think a business person cannot stay without selling his goods on credit but he should make sure that it is not too much

there are some kinds of business you will go into and when you begin to sell your products on credit you will incur a lot of losses. It is not advisable to sell on credit except to a few trusted people.

 

[eldavis]

Though there are definitely some persons you might not be able to ignore when they ask you for credit, either due to trust or based on the kind of relationship you have with them. I would not advice you to run your business on credit tho.

 

[Yohanna]

Selling on credit to customers is not a good business idea at all.

 

[uptrendfinancialsignal]

Selling on credit to customers is not a good business idea at all.

I have always discouraged people from selling on credit because it could run the business down.

 

[Starmix]

This is why we need to allow credit to those companies that are established and have good reputation among suppliers

That is so right, they can pay reasonably, and they have a business as the source of payment for loans. They must be given the chance to approve their loans to supplement their business capital.

 

[Hate2Wait]

We cannot expect sales on a cash only because there are many companies that pay on credit only so we have to adjust

 

[Starmix]

That's true that's the real picture for big businesses with good customers who can purchase goods through credit. They're proven good and trustworthy customers there's no reason to refuse orders through credit.

 

[Hate2Wait]

My company also buys on credit most of the time and pays after 20-30 days only

 

[Starmix]

My company also buys on credit most of the time and pays after 20-30 days only

That's too early to pay, also in the university, once purchase in bulk, it's thru credit and payment after 15 days thru check. It's good to have a good business, you'll be famous to creditors who are good payors.

 

[Hate2Wait]

Most big companies do that and they always mention this to their suppliers that they will be following this credit rule

 

[Starmix]

Then every year end those companies give big calendars, table calendars and planners. There is always something in return. Others send gift cards for employees. They have big profit after doing the inventories.