What considerations that a seller should take into account before giving credit to a new customer

[Stardom22]

Reliability - check if the customer is a honest person who can honour the debt as agreed
Prevailing economic conditions- consider if the economic climate is healthy to warranty giving out the debt

 

[Magnus2022]

In my business now, I don't give credit to even my wife and my self. Everything is strictly on PAY AND CARRY.

 

[cherry123]

It is to make sure that the person is credit worthy. Check if the person will be able to pay the loan

 

[Shavkat]

It is best to ask requirements from the clients about their credibility in paying. Sometimes we can have this to determine how credibility are.

 

[cherry123]

It is best to ask requirements from the clients about their credibility in paying. Sometimes we can have this to determine how credibility are.

This might not really work because a lot of them will not be truthful about it. it is to make your research yourself

 

[Niyi Briggs]

Before you give goods on credit, you must ascertain the person's credit history from other vendors around. Some people are owing the vendor close to you and can't get any more credit there, that's why they turn to you.

 

[cherry123]

Before you give goods on credit, you must ascertain the person's credit history from other vendors around. Some people are owing the vendor close to you and can't get any more credit there, that's why they turn to you.

You are right it is always good to ask around to detect some chronic debtors as soon as possible before giving them your money

 

[eldavis]

Your relationship with the individual matters a lot, how close are you to the person in particular, how much do you trust the person and most importantly, are you willing to let go of the money if things do not go as planned?

 

[cherry123]

The trust level is demanded here, how much you trust the person will determine if you should part with it or not . you just have to be very sure

 

[Springtime]

Before giving credit to a new customer, you should check if the person or his/her company is trustworthy. You should also check the history and background of his/her company. If possible, check the credit rating of the person with a credit agency.

 

[uptrendfinancialsignal]

Goods can be sold on credit to a creditworthy customer.

 

[Niyi Briggs]

You are right it is always good to ask around to detect some chronic debtors as soon as possible before giving them your money

This is a common practice in my place. A person that just stops buying from a particular place he or she used to buy before is very likely owing. You have to ascertain that before giving credits.

 

[cherry123]

People are always funny when it comes to money so it is to do some background checks before giving credit to a new customer or company. they should be trust worthy

 

[Shavkat]

In my business now, I don't give credit to even my wife and my self. Everything is strictly on PAY AND CARRY.

I also have the same business principle. It is a principle of having this phrase: "Business is a business." If we allow the customer/s, it will be abused and in the long run, they might not pay us what are due.

 

[IB D]

You should be able to know where you can always find the customer if he doesn't come back to pay. Find out where he or she stays. Don't also forget to find out his or her workplace.

 

[Starmix]

I think that customer already built good business relationships with the business owner. It is called trust factor. That customer is loyal and and never had failed to purchase something on that business for many years.

 

[Bisolami]

In my business now, I don't give credit to even my wife and my self. Everything is strictly on PAY AND CARRY.

Hahaha
So do you think you are going to be able to achieve that fully?