₦airaland Forum

The Nigeria inflation is not helping or encourage loan company. If you are not getting repayment latest 3 week time do not sell credit or borrow anyone money.

I ventured into a business 3 years ago.

And In other to have an edge over competitors i sold out massively on credits. Many never paid back even to this day.

Few days ago one of them called me to apologized and paid for his own. Surprisingly that money have lost it actual value upto 3 times.

I didn’t even said anything

Inflation or not

Don't ever sell credit (in Nigeria )

Fastest way to kill your biz...

Nigerians do not like to repay debts, this is one of the reasons why credit card system will never work in this country!

fineboynl:
The Nigeria inflation is not helping or encourage loan company. If you are not getting repayment latest 3 week time do not sell credit or borrow anyone money.

I ventured into a business 3 years ago.

And In other to have an edge over competitors i sold out massively on credits. Many never paid back even to this day.

Few days ago one of them called me to apologized and paid for his own. Surprisingly that money have lost it actual value upto 3 times.

I didn’t even said anything

I've forgotten many funds in clients hands .

Sell on credit and ruin your business. Even when they have the money Nigerians don't want to pay their debts.

Sell credit and see ruin.

If you sell credit this period,you are on your own..

If you don't have the money don't buy anything. Gbese dey give high blood pressure and e dey crash person business.

Number one rule of business never sell on credit

fineboynl:
The Nigeria inflation is not helping or encourage loan company. If you are not getting repayment latest 3 week time do not sell credit or borrow anyone money.

I ventured into a business 3 years ago.

And In other to have an edge over competitors i sold out massively on credits. Many never paid back even to this day.
[i][/i][b][/b]
Few days ago one of them called me to apologized and paid for his own. Surprisingly that money have lost it actual value upto 3 times.

I didn’t even said anything

What else where you expecting...
You where trying to edge out competitors by being greedy.

fineboynl:
The Nigeria inflation is not helping or encourage loan company. If you are not getting repayment latest 3 week time do not sell credit or borrow anyone money.

I ventured into a business 3 years ago.

And In other to have an edge over competitors i sold out massively on credits. Many never paid back even to this day.

Few days ago one of them called me to apologized and paid for his own. Surprisingly that money have lost it actual value upto 3 times.

I didn’t even said anything

The truth is that these same people will be mocking you at your back that you don't know how to run a business.
It is better to reduce profit margin and collect instant cash than sell on credit.
Just take it as Bus 101 lesson. I pray God comes through for you. It's not easy.

I sell on credit but only to very good customers with a history of paying back promptly

Credit patronage will never go away. If you can afford what is being requested, there is nothing bad about it. Be wise about it by asking for a down payment. And only do so to credible customers or clients.

thesicilian:
I sell on credit but only to very good customers with a history of paying back promptly

Simple as ABC. That's the point. But to say that people should not sell on credit at all is a myopic statement that has no basis in the real business environment.

Very PAINFUL. They'll swear remorseful, beg u to help/give on CREDIT .They'll promise to pay back in a week,/month time.You pity them and give.That is the END.A week/month don turned uo 2 years. Alaye/madam still dey bounce around as if NOTHING DEY HAPPEN . The couple I help are still bouncing around with lies..I knw how to recover the money wen I'm ready for them

Make una pity pipo oo. Na hungry dey make boys thief.

YouandiAllofus:
What else where you expecting...
You where trying to edge out competitors by being greedy.

Honestly,for his mind taking that stupid step made him feel he is smarter than the competitors.
Now he has burn his own finger playing a foolish smart move.
He has learn the hard way

mastermaestro:
Credit patronage will never go away. If you can afford what is being requested, there is nothing bad about it. Be wise about it by asking for a down payment. And only do so to credible customers or clients.

Some down payment is the final payment . B kiaful

SamuraiXXX:
Nigerians do not like to repay debts, this is one of the reasons why credit card system will never work in this country!

It's a pervasive attitude long before the loan sharks came in. As much as I don't like them, they also show us an attitude of some Nigerians, not honoring agreements!

Story, I guess you've never been in any business. Just keyboard expert adviser...

Dangote distribute cement to dealers on credit, in 2 weeks another trailer load lands again, you make payment of sales,sign for the payment made and the remaining balance and trailer offloads sharp sharp...
Nigeria brewery does the same to drink sellers, hotels and clubs ...
Medical equipment/consumable dealers do same to hospitals .....
You supply on credit, submit your invoice and wait for your payment approval, may take weeks or months before your payment drops and another list is on your desk for supply ...

I guess your advice is for peti traders ...

Going into credit business as an entrepreneur means you have to be practical.
1) Start with small goods to ascertain the level of their credit worthiness.
2) When your customers request for large quantity of goods, oral/written agreement should be involved for the records and for proper documentation evidence incase things go south.
Audio or Video evidence is a good backup including signature.
3) Cut off customers who gave you tough time in your first "3" transactions with them.
4) Discuss payment time frame with your customers; any goods exceed the payment period between 1-3 days on petit remittance and 1week maximum on large money remittance is no business at all.

All this don't sell on credit is just empty neophyte talk

As a business person you have to identify your different class of customers

Because sometimes your best customers will have liquidity issues and will ask for credit.

So you will now do hard face no credit today come tomorrow for a person who is guaranteed and regular business if he has sudden liquidity challenge but you are relatively sure he will come through?

GloriousGbola:
All this don't sell on credit is just empty neophyte talk

As a business person you have to identify your different class of customers

Because sometimes your best customers will have liquidity issues and will ask for credit.

So you will now do hard face no credit today come tomorrow for a person who is guaranteed and regular business if he has sudden liquidity challenge but you are relatively sure he will come through?

You will be taxed with worry and anxiety. If as a business you have chosen not to work on credit, so be it. At least you know for sure how much you have made not how much you think you have made but is based on tomorrow's promise that may never be fulfilled.

I do not agree to this. Please, don't ruin businesses for people.

Do you think Dangote does not sell on credit? Do you think your importers don't buy on credit?


A better advice will be to do proper analysis to know who is eligible, the type of good they want and who and what is not eligible.

Finally, there will always be bad credit. Not necessarily because you messed up but because of other endogenous and exogeneous factors e.g. Covid, Iran and US issue on the Strait of Hormuz, etc.



Some people are car owners today because they had access to credit and were able to leverage on it.


Just make sure to do your analysis well. At the very least, know the person's source of repayment, period of payment, commitment and character, and don't leave things loosely.

fineboynl:
The Nigeria inflation is not helping or encourage loan company. If you are not getting repayment latest 3 week time do not sell credit or borrow anyone money.

I ventured into a business 3 years ago.

And In other to have an edge over competitors i sold out massively on credits. Many never paid back even to this day.

Few days ago one of them called me to apologized and paid for his own. Surprisingly that money have lost it actual value upto 3 times.

I didn’t even said anything

The contradiction in the two @bolded paragraphs prove that you have not learnt your lessons and still blaming everyone including government except you.

Please, you should be banned from advising people on business. You are not even cut for entrepreneurship.

You carried free and quick money crypto ponzi mentality into business. Smh.

Credit is not bad if you are intentional about your business and you know your customer...

You're not a good business person then. Every smart business person knows that one way to keep customers loyal is by selling on credit especially to customers who have built trust over time! This is one reason some people succeed in business while others fail. So op, continue refusing to sell on credit to your customers let's see how far you go in business!

SixSeven:
You will be taxed with worry and anxiety. If as a business you have chosen not to work on credit, so be it. At least you know for sure how much you have made not how much you think you have made but is based on tomorrow's promise that may never be fulfilled.

If you want to stay small, then that's fine. Very few business entities have the resources for self finance.

Dangote took loans to build his refinery
Nigeria takes loans to build infrastructure
Banks give loans to construction companies, oil companies.

Nigerian banks literally offer loans to people based on their income. Gtb has studied my cash inflows and are offering me loans at 2.75% based on this.

It is for you to do your due diligence and manage your risk. Eg sell at a higher rate to a higher risk customer.

U

fineboynl:
The Nigeria inflation is not helping or encourage loan company. If you are not getting repayment latest 3 week time do not sell credit or borrow anyone money.

I ventured into a business 3 years ago.

And In other to have an edge over competitors i sold out massively on credits. Many never paid back even to this day.

Few days ago one of them called me to apologized and paid for his own. Surprisingly that money have lost it actual value upto 3 times.

I didn’t even said anything

You are very wrong, selling in credit is dangerous only if you are selling to struggling individual businesses. Virtually all pharmacies, supermarkets, eateries, hotels, motto dealers, companies distributors, and many big businesses are buying and selling on credit. Infact, you can't do well withiout selling credits in any big business. Besides, there are some businesses that your ability to avoid credit is almost zero. E.g, poultry and agricultural chains.

GloriousGbola:
All this don't sell on credit is just empty neophyte talk

As a business person you have to identify your different class of customers

Because sometimes your best customers will have liquidity issues and will ask for credit.

So you will now do hard face no credit today come tomorrow for a person who is guaranteed and regular business if he has sudden liquidity challenge but you are relatively sure he will come through?

the good customer at the earlier stage turns at the worst at the ends

illicit:
Inflation or not

Don't ever sell credit

Fastest way to kill your biz...

Selling on credit if managed well can open up and expand your customer base but survey the environment to know if that your product will go market there then the capital base of the business the loanee is running. Lot of supper markets buy products on credit but are able to service it because of the capital base they already built. Its difficult to do business without credit in Nigeria just that Nigerian can be very unreasonable someimes

Na only if the pesin fit drop their pomo as collateral make I dey chop steady till them pay, otherwise, na to lock up abeg.

Can't wait to start my frozen food business August next year sha!

I must blow for this kontri Aje!

SamuraiXXX:
Nigerians do not like to repay debts, this is one of the reasons why credit card system will never work in this country!

Its not our fault rather the fault of the government.
Here is why, we where not raised with such a system, the mortgage system like the Europeans that can mortgage house, properties, house hold utensils even school is free education from Primary till secondary, quality education ooo... then its university that's being paid for, then there are student loans.

After graduation you're 💯 % sure of a job that's if you dont venture into personal business.

Its not like Nigerians dont pay back loans, its the hardship and lack of money or jobs. No be who earn go get money to pay back his debt.

If earning is constant people will see needs to upgrade or borrow base on their income, then the system automatically deduct it from their credit card once salary comes in. Simple.

This is why most loan companies only loan money to salary earners because their acct is tied to it