Ask Do you sell to your old customers on credit?

[Btaliat]

Business owners are always in dilemma whenever they are to sell business for their old time customers they doesn't come with money. They won't know whether to sell for such a customer on credit in order to maintain the relationship or they should not care about the growth of the business but their businesses.

What would you advise business owners to do in this instance? Share it in the comment section for others to know.

 

[Newman]

In a way not to lose their old customers, I have seen many of the selling to their old customers on credit. While this is appreciated, it should be done with caution. Not all the time such a thing should be encouraged. Most times, you don't need to sell more than what you can bear.

 

[Dean101]

If someone's been buying from us for a while and is reliable, we're happy to let them pay later. Of course, we set some basic rules so there's no confusion like how much they can owe and when they should pay. It makes life easier for them and keeps the orders coming without a hitch. Honestly, it's all about trust and keeping things friendly. Plus, it helps them manage their cash a bit better

 

[bherniey]

Selling of goods or rendering of service on credit to old customers depends on the customer I will be selling to,if it's a loyal customer that we have build trust between each other and has been a faithful one I can sell on credit to that kind of customer

 

[Dean101]

Cash flow is everything in the early days, and credit sales delay the money you actually need to pay rent, suppliers, staff, and yourself. When customers don't pay on time, you're stuck chasing invoices instead of growing your business. Credit also makes it harder to predict your finances, which is risky when margins are already tight. Startups usually don't have the cash cushion to absorb bad debts, so one unpaid invoice can hurt more than expected.

 

[Newman]

I do see business owners that do sell to old customers truly. I don't really buy this idea. Customers should be treated the same way. With this it will make it easier for the business owners to understand the true behavior of the customers that are patronizing the business owners.

 

[Brajet]

It's not some formal policy; it's more about the relationship. If you've always paid on time and been straight with us, I'll happily float you net-30 or even net-60 when things get tight.

But there's no automatic yes. If someone starts dragging their feet or making excuses, we go back to cash upfront. No hard feelings, just business. We've been burned before, so trust has to go both ways.

 

[Newman]

I have heard about some business owners selling to their old customers on credit just to retain them. That doesn't make much sense to me. Business should not be run like a charity. At least there should be commitments from the customers if at all the business owners want to give out some discount.