How to avoid selling on credit

Good day every body in this wonderful community. How are you all doing?. I trust you are all doing very fine. Welcome to my blog. Today I'll be sharing with you guys how to avoid selling on credit.

An undeniable fact of life remains that in business one can not always be in a fortunate situation of knowing and trusting each and every one of their customer. Therefore necessary precautions should be taken to protect cash flow.

Credit in business simply means giving out both your profit and your your capital out to a customer prolly on trust, to make more profit or in rare cases because of certain circumstances.

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Giving out credit can be so dicey and extremely dangerous to your business because most of the times your customer may disappoint you. Most people don't give credits to strangers, they do give credit to people they have a relationship with. When their customers don't come through to pay up their credit it may cost the business owner to lose on both ends by losing both the money and the relationship

So how can one avoid selling on credit ?

By introducing payments by installment: Some business owners don't like this idea at all, they prefer upfront payment. In situations where upfront payments isn't realistic anymore prolly because your customer undergoing a financial crisis, it is only wise to accept payment by installment. Provided the total sum will be paid at the end.
Do not release the goods until the total sum is paid. This will also encourage your customer to work harder to pay up if he wants to gain possession of the goods.

By increasing the prices of goods sold credit: when you hike the prices of goods you sell on credit it will discourage customers from buying on credit. This method has loads of advantages because you'll be making more profit off the goods if the customers insists on buying on credit and the extra cash made from the goods will serve as a compensation for the duration of credit

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Avoid over familiarity: this is the worse of them all. Like I said earlier, a total stranger wouldn't ask you for credit. Its definitely gonna be a family or friend. Therefore if you must thrive in the business world then you mustn't mix business with pleasure.
Set strict boundaries for everyone, define whatever transaction you are having clearly. Your family and friends should support you and encourage you to be better and not run you dry.
If you feel bad energy from anybody, keep your distance
Learn to say no: alot of people have this habit of wanting to please everyone they come across even in business and its very bad.
The earlier you know that you can not please everybody the better for you.
You need to develop a thick skin and say no when it's not convenient for you.
You need to put you first in your business and nobody else.

I believe with this short article I am able to help identify some business problems and profer solution. I know somebody needs this because of the hight credit rate in his or her business

Thank you for patiently reading. I'll appreciate honest reviews in the comment section