Sleekyshuga:

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

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

tochman:


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

myvision:
There are basic things that you can do to reduce your risk but you can't totally eradicate credit facilities in such business bro.
1. Always start small will your buyers. Try and start with half Bag if possible. Tell them they have to earn your trust before you can start to supply them more. The truth is that if you don't do this they will take your flour and spend your money on another thing. That is their way!

2. Offer a discount or bonus to loyal and faithful customers. Make sure you have a plan to encourage people who don't owe you for a week or a month or quarterly. Depending on what you felt it's right. But monthly, is found to work best in my opinion.

If you can implement these two suggestions properly; it will help reduce your risk greatly bro.

Best if luck

henrico247:
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).

Aribambam:
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

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

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

LesbianBoy:
OP if there is one thing i hate nigerians for is, nigerians sabi spoil business wella. The best thing is, if you want to start any business, make sure its a business of "payment before service". If not, dem go use credit "finish" you! The funny thing is that, many of those creditors have the money to pay but probably they feel by paying you they are enriching you so they don't want to pay! If you give on credit, to collect your money na there wahala go start

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

Tiskified:
As a Chartered Accountant abs SME advisor, I would recommend you extend credit whenever you can.

Extending credit helps you to sell at least 50% more than if you don't. But there is a downside. Selling on credit also exposes you to risk. The interesting thing though is that that risk can be controlled to a large extent because you’re the one who determines the credit terms.

So before you decide whether to extend credit and if so, how much, consider 5 important factors

Credit risk:
Simply put, how much are you willing to risk? Do you have the financial resources to support the transaction? What if the customer never pays at all, will it adversely affect your business?

Credit terms:
You must decide in advance how much credit you’re willing to extend and how long you can afford to wait for payment. The terms can vary all the way from 10-day terms to 90 days or more. To reduce your risk, you may (a) require a down payment.(b) only offer 100% credit to customers who have previously settled within the agreed period.

Credit qualification:
Before you offer credit, determine if the person is credit worthy. But how will you determine if a business/person is creditworthy? Ask questions around, investigate chances are the person has done business with others before you and they can provide a rough guide for you.

Credit policy:
Develop a credit policy that covers the entire process when extending credit to customers, from when you offer to how you will recover any owed sums. The more details you have the better for you

Credit review:
Always review the purchase levels of those you extend credit to. Are they good customers? Do they desire more credit, if so do they deserve it?

Finally an important point is to make sure you keep accurate documentation.

I'm sure you'll be successful.

tete7000:


It's my pleasure my brother. Actually giving credit won't really be a big deal if everyone can be honest and sincere. Myself and a friend are into similar kind of business. We opened a shop and sell pastas - indomie and the likes. It took sometimes before we understand the dynamics of the whole thing. We have actually lost some money before then, both from credit and direct stealing.
People would come, buy and pay. Overtime, they would ask for credit, initially small and gradually graduate into big amounts. They would initially be paying until one day when you have much money with them and then they default and start avoiding you. You run after them, threaten hail and brimstone but to be candid if someone can't pay you, they just can't pay you; there is nothing you can do. Some of the time you have those who do everything to ensure they remain in your good book while with time we just understood some have had the scheme of defaulting at a time from onset. Always remember that business is business and not some compassionate ventures. People will want to make you look like a heartless and mean person sometimes, don't give in to the blackmail. If you need to be firm, be firm. If you lose money only you will bear the pain.

We simply opened a shop near a market and don't have to distribute with truck but I know from experience of others that having a truck introduces another dimension to the whole equation - one of having to deal with dishonest drivers. Thus you might need to try and seek someone you can trust and who is meticulous enough to handle the truck. A reckless driver ruin the truck in no time, a lazy one will spend less time doing business while he finds some other avenue to spend time and a dishonest one turns the truck into some kind of atm machine. If you find an honest driver kindly keep him and treat him well, they are uncommon.
Doing business like every ventures is tough but with patience, resilience, watchfulness and prayer you can pull through. Best of luck.

sorepco:
Y does your sis not go into retailing while u deal with debtors?? At least you have a foot in both spheres as well as gaing both experiences for the business.
.l

cherish:
am into DAT business, I mean I run a bakery at ajah area. Add me on WhatsApp. 08034649417

Laveda:


You know this isn't possible.

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

Sleekyshuga:

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..

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

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

cherish:
am into DAT business, I mean I run a bakery at ajah area. Add me on WhatsApp. 08034649417

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

Adesege:


Now I get.

Ehn, is u not the cow skin and pepper seller in Oshodi ni

Sleeky Shuga Nigeria Enterprises. Dealers in all kinds of meat, pepper, cow skin etc

Adesege:


Send your account details first na. Is u afraid

Include your mobile number too

Laveda:


Seen?

Sleekyshuga:

I forgot we partner ..

It's actually Adesege & Co.

Adesege:


You is afraid jo cos i haven't seen your message.

Djangocode:
As long as Buying and Selling is Involved, ''Sales on Credit'' is Inevitable...


Thing is: Hope for the best when they buy on credit and Plan for the worst when they start telling touching stories...

deltateam:


It depends on the owner of the business. If you say you don't want to sell on credit nah so.