Havep a formal agreement template which you and ur customer will fill for every transaction, and also involve witnesses, let's say a witness for each of the parties. That way in case of default you can threaten institute a court action, nobody wants to go to court.

op i guess u ve been able to at least know more abt this selling on credit. keeping records of the people owing u is very important. let them sign any necessary paper if they collected goods that will make them want to pay on time!

From comment so far , nobody have the experience here.don't go into business that require selling on credit to survive as a beginner
You will not survive unless you have much money to waste

tochman:
Hey guys, since I graduated I haven't been able to secure a job. My sis on the other hand lost her job due to the current economic challenges facing the country.

The thing is, I and my sis are about to venture into flour distribution business. In short we have concluded arrangements with the company but our greatest challenge is what we realized during our market survey. We found out that the business has to do with supplying bags of flour to retailers on credit. I have never ever ever conducted any business that has to do with selling on credit.

Therefore, I am pleading with anyone who has an idea on how these things work, especially professionals, to give a word or two of advice on how best I can manage these creditors without them crashing my business. Thanks

P.s - I have been strongly advised to be careful of people I supply to. I heard that some even do juju that throws you to a state of oblivion

Switch ur plans and venture into a more profitable Business you wont regret.

A business that Guarantees HUGE profit with your Money RECEIVED CASH.

Check my Signature.........

tochman:
Hey guys, since I graduated I haven't been able to secure a job. My sis on the other hand lost her job due to the current economic challenges facing the country.

The thing is, I and my sis are about to venture into flour distribution business. In short we have concluded arrangements with the company but our greatest challenge is what we realized during our market survey. We found out that the business has to do with supplying bags of flour to retailers on credit. I have never ever ever conducted any business that has to do with selling on credit.

Therefore, I am pleading with anyone who has an idea on how these things work, especially professionals, to give a word or two of advice on how best I can manage these creditors without them crashing my business. Thanks

P.s - I have been strongly advised to be careful of people I supply to. I heard that some even do juju that throws you to a state of oblivion

it is difficult to go into selling in our society without selling credit. I will however advise that you get a shop and be willing to endure until you get yourself a strong customer base. It might take some while I can assure you that. If you will sell credit, don't let it be to every dick and harry. Ensure you have first established a strong customer relationship with such a person, they must have been people who have over time pay for what they purchased and who have demostrated some measure of trustworthiness and integrity. Know their shops and even if possible houses and put a limit (cap) on how much credit you are willing to give out. Ensure the limit is what you can afford to let go in case of worst scenario. Finally if possible, dont sell on credit at all. Even with the person you thought is trustworthy getting your money could be an herculean or even and impossible task. It is always not possible to lose some of your money when credit is involved, that is the absolute truth. Prepare your mind for that.

My Nigerians are the worst people to do business with, they are full of fake promises, I have lost millions because of credit until a friend on mine advice me and made the statement to me and I quote." NO BUSINESS SURVIVES ON CREDIT" why not try distributing cement(like dangote cement).

you must sell on credit, have a strong credit policy, like old debt must be cleared before new issue. if they want 10 bags, give them 5 bags. extend credit according to the profit you have made from them. learn the business well, flour expires after 3 month

Every true business man knows credit is inevitable in business. Credit can build or bring down your business. As a beginner, zero credit is advisable until a level of trust has been established. And you have to monitor and study your customers to know how often he quarrels with his/her creditors, and inquire from other suppliers as well, they will tell you those that are credit worthy. But for now as a starter, don't give out on credit. If you must, there is another way round.....you supply in the morning, come back in the evening to get ur money, if the person didn't pay up, u carry whatever you suplied

fellis:
Record everything.
Absolutely everything.
Record how much the bags of flour that were purchased cost or how much you agreed to sell to the customer then record the date of purchase and the day the customer says they will make payment and make sure your customer signs all this to be sure of compliance and understanding on their part.
People are always trying to play smart and will search for loopholes in your business contract to avoid paying what they owe.
If possible have a witness at hand when your customers are making credit purchases.
All this is to avoid being cheated or to eliminate errors from forgetfulness on your part or your customers part.
If they make part payment, record it in a receipt stating the deposit that was made and the balance that is yet to be paid.
Save every business detail in a computer if possible.

Your very right. Checked ur dp, ur thots are quite deep.

icebebe:
Its inevitable u jus ave to,but give to only dose u sincerely knw will pay u at d given time you are very Rice my dear

And you are beans baby

You and your sister will make a big loss. Be warned!!! I will advice you look for another business or find a way to make them pay you on delivery to avoid stories that touch.

Selling on Credit is a based on hope & trust, at the same time its inevitable in some business like Importation of used electrical goods in Alaba mkt (40ft container). Most retail buyers will want to pay part & take the rest goods on credit. Some times they payback, sometimes its story upon story.
But since its Inevitable, here's the best move:
If Mr A asks for 50 sets of used DVD each costing 1000. Let him pay something, atleast something enough to cover the cost price. Atleast that way you re sure of having your capital intact while you chase them later for your profit #good luck #speaking from experience

Laveda:


Well said!
Your last line, no one does but the credit thing is what we can't just get over especially in Nigeria here
No matter how you try customers will still come asking to buy on credit.

You are right.

It would have been no problem selling on credit in Nigeria but for the "Nigeria Factor".

We don't keep to agreement and find every means to put our creditors in a state of oblivion.

To your Personal Text, I came to steal your beautiful DP

Adesege:


You are right.

It would have been no problem selling on credit in Nigeria but for the "Nigeria Factor".

We don't keep to agreement and find every means to put our creditors in a state of oblivion.

To your Personal Text, I came to steal your beautiful DP

All characteristics of a typical Nigerian.


You'll have to pay before stealing

Laveda:


Well said!
Your last line, no one does but the credit thing is what we can't just get over especially in Nigeria here
No matter how you try customers will still come asking to buy on credit.

True dear, and most buyers are salary earners (especially those in the corporate world); they plan to pay only after they collect their monthly salary..

She should go into agreement with only credit worthy customers.. Those saying, 'no credit today, come tomorrow,' she didn't say she is selling rice and beans in cups but SUPPLY ..

Well, I do business with only credit worthy customers, with majority of my customers being men.. They price less, and pay up, most times to impress you ..

Laveda:


All characteristics of a typical Nigerian.


You'll have to pay before stealing

Bank transfer, western union, which do u prefer?

Just send your bank details. Ama withdraw from your account and pay you

Sleekyshuga:

Most buyers are also salary earners (especially those in the corporate world); they plan to pay only after they collect their monthly salary..

She should go into agreement with only credit worthy customers.. Those saying, 'no credit today, come tomorrow,' she didn't say she is selling rice and beans in cups but SUPPLY ..

Well, I do business with only credit worthy customers, with majority of my customers being men.. They price less, and pay up, most times to impress you ..

But I don't think it's logical to fund my business with my salary.

A business should be able to fund itself.

So, I will only have to pay once I'm outta stock.

Or don't you think so?

Every client is a worthy client else I will stop buying Cow skin and Pepper from you again, Shuga

Adesege:


But I don't think it's logical to fund my business with my salary.

A business should be able to fund itself.

So, I will only have to pay once I'm outta stock.

Or don't you think so?

Every client is a worthy client else I will stop buying Cow skin and Pepper from you again, Shuga

Nah!! I was referring to buyers, and not sellers or distributors..

Most buyers who are salary earners depend on the inflow of their salary to pay up; reasons a seller should have enough fund to run his/her business..

Hahahahahaha @ cow skin & pepper .. Evils..

Sleekyshuga:

True dear, and most buyers are salary earners (especially those in the corporate world); they plan to pay only after they collect their monthly salary..

She should go into agreement with only credit worthy customers.. Those saying, 'no credit today, come tomorrow,' she didn't say she is selling rice and beans in cups but SUPPLY ..

Well, I do business with only credit worthy customers, with majority of my customers being men.. They price less, and pay up, most times to impress you ..

That's true.... But the way people are even when they receive their salaries they still find it hard to pay up.
Sometimes they change the road they pass to work

I don't advise she starts up with the credit thing, that's definitely gonn' pull down the business they should be able to pay up at least for now till she has gained much money from it.
"No credit today come tomorrow" trust Nigerians to always go through the back door.



Oh Men!!! I love them when it comes to business, they'll buy and even pay extra at times to impress.

Adesege:


Bank transfer, western union, which do u prefer?

Just send your bank details. Ama withdraw from your account and pay you

You know this isn't possible.

I'm sending my account number..
Bank transfer would do.

Young03:




what do u know about business?

nothing
Lecture me please.
Even before you were conceived, i have been in business.

Laveda:



That's true.... But the way people are even when they receive their salaries they still find it hard to pay up.
Sometimes they change the road they pass to work

I don't advise she starts up with the credit thing, that's definitely gonn' pull down the business they should be able to pay up at least for now till she has gained much money from it.
"No credit today come tomorrow" trust Nigerians to always go through the back door.



Oh Men!!! I love them when it comes to business, they'll buy and even pay extra at times to impress.

Only a wicked person will owe someone and feel very comfortable about it , same way everyone cannot owe her at the same time.. It's not possible..

I have customers who pay up immediately, those who take a day or two, those who wants to see the supply first before they pay, and those in the corporate world who pay up when the month ends.

Well, she should just have set down rules that will be followed strictly or better still, run an online platform.. That way, no one will ever owe her BUT....how many Nigerians order for flour online ? We never reach like that na ..

LOL at men.. Inasmuch as they are the best customers to have, we still have the petty ones ..

Simply make God the CEO of your business/company, then you can carry on. Even the economic crisis won't disturbe your business. Try it...
Your testimony would be huge.

Sleekyshuga:

Only a wicked man will owe someone and feel very comfortable about it , same way everyone cannot owe her at the same time.. It's not possible..

I have customers who pay up immediately, those who take a day or two, those who wants to see the supply first before they pay, and those in the corporate world who pay up when the month ends.

Well, she should just have set down rules that will be followed strictly or better still, run an online platform.. That way, no one will ever owe her BUT....how many Nigerians order for flour online ? We never reach like that na ..

LOL at men.. Inasmuch as they are the best customers to have, we still have the petty ones ..

The Nigerians I know will always break rules, it's never easy to run any business without credit I mean it's rare..except the online business you suggested. And yeah it can't be carried out online.

So I think she should watch the kinda people she gives her flour on credit to, check how their sales go on daily basis how often the person comes to shop and how serious the person is with his/her business that way she might be able to know those that would pay up on time to enable her business survive.
Selling to little companies would be cool too.

Yeah some men are quite petty, they price your goods like they went to the market with you, trust me you don't wanna come in contact with that set.

Laveda:


Selling to little companies would be cool too.

Yeah some men are quite petty, they price your goods like they went to the market with you, trust me you don't wanna come in contact with that set.

Companies do not pay up immediately. They run a third party contract.

E for better if na only to price the goods .. We go haggle the price until you sef go fear ..

Sleekyshuga:

True dear, and most buyers are salary earners (especially those in the corporate world); they plan to pay only after they collect their monthly salary..

She should go into agreement with only credit worthy customers.. Those saying, 'no credit today, come tomorrow,' she didn't say she is selling rice and beans in cups but SUPPLY ..

Well, I do business with only credit worthy customers, with majority of my customers being men.. They price less, and pay up, most times to impress you ..

I no go mind transact with you

I'm interested in your hot commodity and i guarantee to pay a competitive price

tete7000:



it is difficult to go into selling in our society without selling credit. I will however advise that you get a shop and be willing to endure until you get yourself a strong customer base. It might take some while I can assure you that. If you will sell credit, don't let it be to every dick and harry. Ensure you have first established a strong customer relationship with such a person, they must have been people who have over time pay for what they purchased and who have demostrated some measure of trustworthiness and integrity. Know their shops and even if possible houses and put a limit (cap) on how much credit you are willing to give out. Ensure the limit is what you can afford to let go in case of worst scenario. Finally if possible, dont sell on credit at all. Even with the person you thought is trustworthy getting your money could be an herculean or even and impossible task. It is always not possible to lose some of your money when credit is involved, that is the absolute truth. Prepare your mind for that.

Thanks for the advice bro. We already rented a warehouse and we also plan on getting a truck for delivery. The thing is, buying on credit is a part of the flour business and I think I buy some of your ideas like having enough info about the customer and setting a credit limit. I think I'll try to work with that. Thanks again

jaybee3:


I no go mind transact with you

I'm interested in your hot commodity and i guarantee to pay a competitive price

Jaybee, you MUST (note that capital letters) do business transactions with me , even if it means shipping to the UK for you..

I never ready to give you heat . When I don ready, you go know .

Sleekyshuga:

Jaybee, you MUST (note that capital letters) do business transactions with me , even if it means shipping to the UK for you..

I never ready to give you heat . When I don ready, you go know .

I'm only interested in your hot commodity and we shall engage in trade by barter

jaybee3:


I'm only interested in your hot commodity and we shall engage in trade by barter

2 kobo

Sleekyshuga:

2 kobo

Your commodity's worth is only 2 kobo?

Okay i will multiply it by a few hundreds

fellis:
Record everything.
Absolutely everything.
Record how much the bags of flour that were purchased cost or how much you agreed to sell to the customer then record the date of purchase and the day the customer says they will make payment and make sure your customer signs all this to be sure of compliance and understanding on their part.
People are always trying to play smart and will search for loopholes in your business contract to avoid paying what they owe.
If possible have a witness at hand when your customers are making credit purchases.
All this is to avoid being cheated or to eliminate errors from forgetfulness on your part or your customers part.
If they make part payment, record it in a receipt stating the deposit that was made and the balance that is yet to be paid.
Save every business detail in a computer if possible.

Thanks bro. This will go a long way in helping