Ask Why you should not sell on credit as a startup business owner?

[Btaliat]

Business owners that sell on credit to customers are not ready to paddle the business well. Business is not to be done or run like a charity place. Selling on credit as a business owner that is just started is like trying to kill a business. Business should be done in a way that is unique. Everything counts in business and because of this, there should be make reason to sell only for those that have money.

What do you think about this? Share it in the comment section below.

 

[Brajet]

Basically, you're letting people take your stuff without paying you right away, which messes up your cash flow big time. When you're a new business, you gotta have cash coming in regularly to pay for things like rent, bills, and whatever else. Plus, chasing people for money is a total pain, especially if they take forever to pay or just don't pay at all. It's way safer to ask for payment upfront

 

[Newman]

Don't sell on credit. If may be difficult for you to stop. You just need to make sure you reduce the price for your closest customers, or ask them to come when they have money. This may prevent you from chasing them to pay up the debt owning by them

 

[Dean101]

Letting customers pay later means you might be waiting forever to get money you actually need for stuff like supplies, rent, or paying yourself. Small businesses usually don't have the time or energy to chase people down if they don't pay. It can also make your accounting messy and stressful. Sure, offering credit might make you look nice to customers, but for a startup, the headaches usually aren't worth it. Sticking to cash sales keeps things simple and makes sure money keeps flowing

 

[Newman]

You don't sell on credit to attract people. The fact is that majority of them may continue the line. They may not want it to stop. And it is very obvious that business cannot be run based on credit. While you should not jettison the idea, you don't do it frequently

 

[Newman]

A startup business owner do not need to be selling on credit. It may be difficult for such a person to stop the acts. It is always better if at least you start with giving your customers discount if all you want to be kind or even retain them as your customers