Post by Obafemi EMILOLA, FIMC, CMC® (@obageglobal)

GIVING CUSTOMERS CREDIT CAN INCREASE SALES BUT ALSO CREATE CASH FLOW PROBLEMS.

When you sell on credit, you may record a sale without receiving the money immediately. Meanwhile, you still have expenses to pay, such as salaries, rent and suppliers.

Before offering credit, set clear payment terms, keep proper records and follow up on outstanding debts.
More sales are good, but collecting your money matters too.

Does your business sell on credit, and how do you manage unpaid debts?

#Entrepreneurship #SmallBusiness #BusinessManagement

GIVING CUSTOMERS CREDIT CAN INCREASE SALES BUT ALSO CREATE CASH FLOW PROBLEMS. When you sell on cre...

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Comments

Happiness Nkiru: Yes I only give on credit to those I supply goods to,but I don't give credit to random customers
Minister of Enjoyment: Managing credit sales requires balancing revenue growth with tight cash flow control so that unpaid invoices do not disrupt daily operations.

Best Practices to Manage Credit Sales and Unpaid Debts

• Set Clear Payment Terms: Define exact due dates (such as 7, 14, or 30 days) in writing before relea...
Mimi: I don't sell on credit unless a regular and trusted customer.
Phemia’s Diary🦋: Credit sales can increase customer's loyalty, but without proper boundaries, you may end up chasing your own money.
Chidimma....: Exactly! Sales are not truly beneficial if customers fail to pay on time. A business needs both profit and steady cash flow to survive.
Linzkits: One needs to be careful with credit sales... Because many businesses have gone down on this level.
Joseph The Dreamer: This credit stuff have ruined many businesses. But sometimes some business can't survive without giving trusted customers credit
Adebukola Adenike: The aftermath of credit sales is not always good. However it can be totally left out of business.
Just know who is who before going on that track
Miss Annabel Ossai: I won't even allow credit, cus once they know you as someone who give out in credit thy we abuse it and such collapse business
Atteh: Jotting it down just in case I decide to start a biz 🙏🏽