How to reduce credit purchases for your Business

[Augusta]

The truth Is buying and paying immediately for your goods or products come with it's benefits. You would be able to get good discounts, you would be able to get exact color and size of products because with money you can look for the things you want and even buy else where if your regular supplier doesn't hsve them but it isn't same with credit purchases, you would have to go with what your supplier that agreed to credit purchases have. These issues might become a stumbling block. So you would need to do more of cadh buying.

So how can you reduce credit purchases so that you grab the benefits of doing cash purchases most times

Always keep money for purchases of new products or goods

Reinvest your profit to get more money which can help you pay cash for more goods

Buy the quantities you have money to pay then repeat the process after selling the previous ones
What do you think?

 

[Carpon]

Credit purchase to me is the same as loan collection. Even though they are two different things I see them as one and the same.
The more you collect on credit the less your income value because even before you realise your profit you will have channelled most of it for credit purchase settlement. It really retards any person that will want to save because you will have little to even settle current issues rather than thinking about saving you will be thinking about settling.
Ways to avoid such include disciplining yourself on credit purchase. You must have the discipline of not collecting goods in credit and avoid it with all your heart. Furthermore try as much as possible to buy all your necessary tools and needs immediately you get paid to avoid collecting on credit because you do not have money to settle for them instantly. Settle every need optimally and avoid leaving out on some basic and important needs which may be a reason why you will need to purchase on credit.
Any business person who is not able to avoid incurring so many debts on him or her will have a lot of business and financial crisis to battle with.