Finance How Do You Manage Your Credit?

[Good-Guy]

The term "credit" usually refers to purchasing products from another party with a promise or guarantee of paying for goods at a specified time. When it comes to financial matters of busines, credit is very important because usually large corporations or businesses often like to purchase products on credit and this is because they might not have cash in hand at the time of purchase. Credit can be both good and bad. It can be good because it helps to maintain and build trust between businesses and it can be bad because you may not get cash on sale on the right time. So when it comes to your business, how do you manage credit? I am sure it is much better to provide credit to the party that has been buying from you for a long time. What would you do if you give goods on credit but you yourself end up needing money?

 

[btaliat]

There is one thread similar to this thread and my opinion won't still change. I don't support sellers to always sell on credit no matter the time bound between the sellers and the buyers. It is better to advise the buyers instead to buy what he can afford at that particular time.

 

[Good-Guy]

There is one thread similar to this thread and my opinion won't still change. I don't support sellers to always sell on credit no matter the time bound between the sellers and the buyers. It is better to advise the buyers instead to buy what he can afford at that particular time.

Hello! I am not sure what thread you are refering to I have used Advanced Search feature on this forum and I was not able to find any such thread similar to mine. Anyway, when it comes to selling goods on credit, sometimes you have no option but to give products on credit. Otherwise, you may lose customers because not everyone has cash at hand all the time.

 

[Mandy96]

Well selling on credit can be considered with terms and conditions because if not then your buyers will surely take you for granted and it might destroy your business. Selling on credit should be on agreement which means both the seller and the buyer will have an agreement on when to pay and this should be on paper for security purpose.

 

[Good-Guy]

Well selling on credit can be considered with terms and conditions because if not then your buyers will surely take you for granted and it might destroy your business. Selling on credit should be on agreement which means both the seller and the buyer will have an agreement on when to pay and this should be on paper for security purpose.

Yes, you are right. When it comes to selling products there should be an agreement between the buyer and seller that clearly state the terms and conditions related to credit limit and total time period of credit. Both the parties should have a mutual understanding and clearly agree on terms and conditions before making a deal. This is the best way to avoid confusions.

 

[Alexandoy]

One of the big problems of my business was the credit line of big customers. Some have been abusing us that after 30 days of credit the collection team would be promised to pay within 15 days. For all we know it was already 60 days and we still had to collect from the client. We somehow tolerated that situation when our cash flow was good. but when the cash flow became tight we stopped giving those clients anymore.

 

[Abigael]

I would not advice anyone to sell on credit. Especially if it is a small business or one that is not yet well established. It is best to keep off credit because some people may not pay you back did to different problems. That can cause your business to go bankrupt at such an early stage.

 

[Yusra3]

Credit management is a must-do thing for your personal finances to be in good condition. Make sure all payments for financial obligations are made on time, to avoid being recorded as missed payments on the credit report. Do not to get your credit card balances high in relationship to your overall credit limit. It is recommended to not open new credit accounts too many at a time. Getting credit reports on a regular basis with an eye out for errors and fraud is highly advisable. Use various types of credit reasonably offenders such as loans and credit accounts. Should you encounter a financial strain, at the earliest possible contact the creditors and let them know of the same in order to discuss hardship programs. Proper credit management is a guarantee for building better credit history which will result in better credit scores.

 

[ebizneeds]

Remember, managing your credit takes time and effort, but it can pay off in the long run by helping you secure better interest rates on loans and credit cards.