₦airaland Forum

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

Sorry bro, I'm actually based in port harcourt, not lagos

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

Someone else gave that suggestion earlier. Will think about it. Thanks

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.

Thanks for sharing your experience. Its will definitely serve as a guide for my biz. Thanks bro and may God prosper our businesses

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.

Thanks for your professional advice. I will definitely put it into consideration.

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

Thanks bro. The man in charge of the company's depo here gave me orientation about the business

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).

The cement business was the first idea I had but the competition here is really crazy.

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

Thanks bro. Your suggestions will go a long way

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

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

chccho:
Abeg what is logical about what this plaetton guy has said? Is it that the dasuki loot of $322m is too small or that he needs to go and complete the stealing to balance up to $2.1b before we can call him a thief?? Pls what sense are trying to make here that he is a small thief or what? I hope i haven't lost my mind but where i come from whether u steal N10 or 1000 thief na thief
Am glad to read that u stopped commenting on NL cos we want comments from people that reason logically and not the reverse

My brother, the fact is that you still don't comprehend the post. He is not saying that dasuki did not steal. All he is saying is that, the president should get his figures right before going on international t.v. What if the president is interviewed tomorrow and gives a different figure? That's the problem we have in the country. Lai mohd even said that the money is now $ 11b. Does that make sense to you and people listening around the world?

These monies should have been diverted to increasing the wages of civil servants in this hard times and loans for serious entrepreneurs that plan to be employers of labour. We need to reduce the level of unemployment in this country. As for the 5k I know its going to the north cos that's where the extremely poor are. Its a way of compensating them for their votes

Stopped commenting on nairaland since ppl stopped being logical. I'm really glad to see 1 logical person (plaetton) here. Yet some still find it difficult to comprehend his comments. It is well. May God help us all

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

What obj is trying to say is Nigeria (zoo) needs patience. That's what I think

Punch has been punched

Hey guys, pls check my article out and drop your comments if you can. Its very brief and precise and won't take much of your time. It will really go a long way in helping a brother. Thanks. Here's the link http://myefiko.com/blog/2016/04/28/starting-a-business/

Yemzy89:
I recvd d breakdown of mai test just now tru mail, any1 wif d same ish

I also received mine and I can't believe what I'm seeing. There is no way I scored 3 out of 16 in abstract. Its very impossible

25%

samjadinero:
Wike, my Man! Pay my allowee sha... N120k no be beans. E go reach me startup.

Guy calm down. You no dey see say plenty people dey before you. Enya line jor...lol

Creating jobs by patronizing suya joints
By the time he finishes buying suya for his entourage, more youths will be encouraged to join the suya way of life

Happiness87:
i know he has cleared the following debts left by Ameachi
1. Corpers were owed since 2011
2. the two football clubs in Rivers were not paid for almost 6months
3. Civil servants were owed 3months Salary.
4. Students on scholarship got stranded abroad
5. contractors are back to site
6. Pension nko


at the last check, he is not owing any salary

cc:passingshot, ngeneukwenu, dre11,demdem, omenka, gbawe, gbawe2 una sabi propaganda ooooo

He has not paid corpers yet o. And its since 2012 batch A. But u are right about the others

Marine spirits

This is what I call spillover. I hope it doesn't extend

NaijaTalkTown:
Thank God most of those oil bloc owners supported Jonathan openly. It will be easier to retrieve and nationalize those oil blocs in other to empower our stagnant economy.

U think?
Why do u think the UK and US were empowering Buhari? because of groundnut pyramids in the north?

tosscash1:
yes and dat cost him his job
when he stupidly decided to dump d best goalkeeper in d world


rubbbish!!!!!!!!

Hope u've changed ur mind now?

fireforfire:
lol... What were u scared of

The lagoon