CREDIT SALES: How to Reduce it and Make More Money

Simply put, Credit Sales mean the allowance of goods or services to your customers, expecting them to pay in the future.

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.


Credit Sales


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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.

Credit Sales
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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.


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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.

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Moreover, credit sales have always been a part of the modern market, but having a long list of debtors will do your business much harm especially when you are still a starter or operating on a low capital. Try these measures to stop harbouring debtors and you’ll be glad you did.



Do you allow your customers to buy your products or services on credit? How has it affected you? Share with us in the comment below

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