₦airaland Forum

Have you ever been in a situation where you finished a service for a customer and the next thing you hear is:

“Please Pardon me, I don’t have the money to pay you right now, I will pay you later”

Although allowing credit sales can bring more customers, it can also be a risk to your business because most times, your customers may disappoint you.

Every entrepreneur wants to be paid on the spot when a service has been rendered or when a customer picks up a product.

But sometimes, clients don’t have money to pay for a spot and may wish to pay later.

However, in this article, you will learn strategies that will stop customers from buying your products or services on credit or reduce credit sales.




1. Place A Notice

If you want to stop customers from buying on credit, placing a notice is one of the best strategies you can apply.


Have you ever gone to a restaurant and see the word written boldly

“Pay Before service”

This will tell the customers that before you can eat there, you must pay first.

One of the funniest notices I have seen is

“No credits today, come tomorrow”

So even when you come the next day, you will still see the same notice telling you to “come tomorrow”.



2. Build A Trusted Brand

Building a trusted brand is one of the ways you can reduce credit sales.

As a business owner, your brand must be trusted before people can pay you instantly for any product or service.

People will prefer to shop on Amazon (and joyfully put in their credit or debit cards) than a low-quality e-commerce company because they believe that Amazon will get the products to their residence without issues.



3. Do Not Engage In Excessive Production

Avoid or reduce the excess supply of a product if want to stop customers from buying your products on credit.

You would eventually need to sell some of your products on credit when supply is greater than the demand for it, especially when you're dealing with a perishable item.

This can be seen in the case of a farmer who produced over a thousand baskets of tomatoes when the demand for his produce is less. He would need to sell a huge fraction of his produce on credit or lose them entirely.

Since there is always a way to estimate what clients would need in a certain period, products and demand should be on a balanced scale to avoid debtors.



4. Study Your Client's Behavior

There will surely be a period where it is difficult to make sales in every market. Note this period and do not try to force sales as you could end up selling on credit. 

Clients can also make large purchases with the hidden motive of owing you some part of the money. If you know your customers well, then you can understand when they are about to do such. Never yield to their request.



SOURCE: http://passionentrepreneurs.com/credit-sales/

Customers will want to buy on credit only if you present yourself instead of the business. Lots of factors comes to play though. For example, get ready to sell on credit if your business location is within an area where you're well known.

One thing I've get to understand over the years as an entrepreneur is: Your customers are more likely to request products on credit if your business is small and doesn't have an independent department, like the cashier.

So, employ more staff and see the credit request rate drop.

EntMirror Is A Home To All Entrepreneurs

Credit itself is a business.... ;DGod will deliver us especially now that everything is credit, even government dey do work on credit.

Just put a post on your shop door...
No credit today... Come tomorrow...

Yes right on point

Don't sell on credit....

I owned a shop before I got a job...a year after I closed the shop now, I still have people around my estate owing me money

They just look at me and pass.. debtors are evil...

Never sell on credit...

Right!

AkNoble1:
Yes right on point

even women no dey gree credit again

Put this up

Put a sign that says, "in God we trust, all others pay cash".

Just put a write up that says "NO CREDIT TODAY, COME TOMORROW"

That shows you are not ready to listen to any plea.

You tell them to come back tomorrow for credit.

Credit kill business

Just ask the person how you will get your money should in case he dies on the way out of your shop.

It's LadyF again.

Simply tell them NO!

I gat a UK verified AdSense account for sale, hala me

credit.......... u go fear o

I no dey sell on credit... simple

0% tolerance on credit purchases. Credit purchases can kick a viable business, from the throw - line into an open penalty...........

mccoy47:
Put this up

Can't stop laughing at the writeup

Gudfrie:
Probably you are
doubting see thisAcct: 02******56
Amt: NGN64,351.00 CR
Desc: CASH DEPOSIT FROM FUMDENGI/RUSS.--- NG, LOSNGSTAN9999871369
Avail Bal: NGN66,721.06

You're a big thief

TOLULOPEMIDEAR:
credit.......... u go fear o

No fear nah. I hope pay back with MMM style interest margins....

Atalia:
I gat a UK verified AdSense account for sale, hala me

You don tire to blog?

Anyone of these works