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This question has been closed, and points have been awarded.
What Should I Do About Credit?
Posted By: malaksajjad* on 6/24/2005 11:15 AM (CST) 25 Points
Because mostly people demands the crdit but my company did not allow me. The sarvival of my in the market is become dificult. what should i do.

Posted by: naomi Member Response
6/24/2005 11:28 AM (CST)
Accepting credit cards is almost a necessary part of doing business these days. It is very difficult to answer your question without knowing the reasons you can't accept credit cards.
 
Posted by: michael Member Response
6/24/2005 12:03 PM (CST)
If you're talking about accepting credit cards direct from a customer, you can always encourage them to take a cash advance.

If you're talking about corporate customers demanding credit, there are many companies that do just that. Talk to your local bank. I'm sure they have a solution for your customers...usually something like 90 days same as cash.

Michael
 
Posted by: mgoodman Member Response
6/24/2005 9:58 PM (CST)
Where are you? What industry? How big is the credit risk in your industry? Consumer or B2B? Products or services, or both?
 
Posted by: malaksajjad* Author Response
6/25/2005 8:01 AM (CST)
I am related to lubricants product here in Pakistan, mostly customers demand the credit. Last time i brief him about every thing what I can and the customer agreed with me and also ready to buy but only on credit basis. Now what I should do??

Normaly the banks are not coopreate with in this regard.
 
Posted by: malaksajjad* Author Response
6/25/2005 8:10 AM (CST)
I am related lubricants sales. I have a new imported product. Mostly people here in Pakistan demand s the credit. I detail them about my product, company and a lot but at the end they agree to buy the product but on the conditioned of credit.

What should I do?

Here in pakistan no bank agree to finance like the kind of deal.
 
Posted by: malaksajjad* Author Response
6/25/2005 8:17 AM (CST)
here are no satisfactory ansawer.
 
Posted by: savialeigh* Member Response
6/25/2005 10:31 PM (CST)
Establish a credit time-line. All new customers (which, if your company is new, is all of them) pay either all or 50% upon receipt (C.O.D. in the US - cash on delivery). This percentage should be at least equal to the amount you need to get the product to the customer.

Depending on how pricey the product is (including shipping) you can require more or less of a COD payment. If it is less than 100%, offer net 15, 30, or 45 on the remainder. Make it very clear that late payments of the remainder will revert the client to full COD status.

Make the COD requirement for 6 months. If, after 6 months, your clients have made timely payments of the remainders, you can convert them to credit status, again with the clear understanding that late payment will reinstate the COD requirements.

Use the net payments as cashflow to help offset the partial credit given with the COD method. You can extend the net from 15 to 30 (or whatever) for good clients, and keep the COD requirement in place, or you can elect to extend a certain dollar amount of credit to established clients.

When they say we have to have credit, your answer is okay, but you have to earn it. Require references and check them before granting anything less than 100% COD. If they are a good risk, make the COD as low as you can (covering only costs). If they are moderate risks, make it costs plus 25% of the remainder, and if they suck or have no established credit, start at 100%.
 
Posted by: malaksajjad* Author Response
6/26/2005 4:53 AM (CST)
It is difficult to add some percentage in the actual cost here in retail side. They demand the actual price according to price list which I provide in the market. My question is still there how can I manage the crdite and how can I avoid the credite?
 
Posted by: malaksajjad* Author Response
7/9/2005 8:17 AM (CST)
I could not satisfied about my question's answer. Please cary it forward. sajjad
 
Posted by: malaksajjad* Author Response
7/9/2005 9:16 AM (CST)
It is difficult to add some percentage in the actual cost here in retail side. They demand the actual price according to price list which I provide in the market. My question is still there how can I manage the crdite and how can I avoid the credite?
 
Posted by: carrie77 Moderator Response
7/15/2005 7:49 AM (CST)
Hello malaksajjad -

I'm closing your question and refunding your points, since you didn't receive a solution. I'm sorry about that! You are welcome to post again when you have another marketing question. Also, please provide more information up front. This usually results in a better response.

Regards,
Carrie (Production Editor)
 
Posted by: malaksajjad* Author Response
7/16/2005 11:22 AM (CST)
It is difficult to add some percentage in the actual cost here in retail side. They demand the actual price according to price list which I provide in the market. My question is still there how can I manage the crdite and how can I avoid the credite????????????????
 


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