Is the selling in credit basis really a strategy for attraction of the customers on your businesses?

[Stardom22]

Most people think that they would have more customers on the business when they sell on the credit basis. This is because of the notion that most customers wouldn't patronize the businesses that have strictly buying in cash basis.
Most businesses however have gone bankruptcy because most creditor's doesn't repay back the money they owe businesses.

 

[Suba]

You are right, the purpose of credit sales is to increase sales or speed up investor turnover, it can also strengthen the relationship between business people and consumers. But currently there are many offers for online purchases on credit such as PayLater, which is paid later, when the customer buys goods, PayLater or other funding providers will cover the payment from the buyer to the seller, then the buyer only deals with Paylater. So sellers won't go bankrupt if buyers don't pay their debts.

 

[eLdavis]

Starting your business under selling on credit is a recipe for disaster. While this might attract a lot of people, it would lead more losses.

 

[Augusta]

That's the whole idea you can lureore buyers with credit sales but only give to credit worthy people to avoid losses

 

[freelancermaria]

Offering goods on credit can attract customers, but it also carries potential risks. Some may fail to make payments, resulting in financial losses.

 

[King Belieal]

I don't think this is really a positive strategy to be used in business. It would ultimately weigh your business down in the end.

 

[Suba]

I don't think this is really a positive strategy to be used in business. It would ultimately weigh your business down in the end.

The credit sales system has been widely implemented in both online and offline trading, such as credit, motorbikes, televisions, laptops, etc. which are not directly borne by the seller but are paid first by the fund provider, be it a bank or non-bank financial institution.

 

[Augusta]

Offering goods on credit can attract customers, but it also carries potential risks. Some may fail to make payments, resulting in financial losses.

Yeah but first you have been able to attract them to your business you need to have loyal customers

 

[Xtynehappy]

With the selling in the credit basis, the business owners should be very cautious on who they give them credit do that they minimize the potential losses caused by creditors.

 

[kerryjoy]

Credit sales are a double-edged sword. They boost sales but risk bad debt. Customers who don't pay can hurt your cash flow.

 

[King Belieal]

The credit sales system has been widely implemented in both online and offline trading, such as credit, motorbikes, televisions, laptops, etc. which are not directly borne by the seller but are paid first by the fund provider, be it a bank or non-bank financial institution.

I understand that aspect. That's when people use credit cards to buy things. The bottom line here is that the seller gets his money for the sale.

 

[Suba]

I understand that aspect. That's when people use credit cards to buy things. The bottom line here is that the seller gets his money for the sale.

That's right, sellers will still receive their sales proceeds from the bank when you use a credit card, likewise when you activate the PayLater feature in various marketplaces to buy clothes, shoes or whatever, the person paying the seller is a non-bank financial institution.

 

[Augusta]

With the selling in the credit basis, the business owners should be very cautious on who they give them credit do that they minimize the potential losses caused by creditors.

That's right . Selling on credit has two sides You gain and loss but you have to be careful to avoid losing.