Selling on credit
Mar 2009
I make unique ceramic pottery and sell these to boutique store in local area. I have been selling for cash. I accept payment in cash or check. Some of my larger clients have started asking that I give them 30 days to pay. What so I do?
A.P, CA
You should definitely considering selling for credit. You may actually be limiting your market by only accepting cash or check. If you accept credit, you will not only retain these clients also add many more to your portfolio. There is some risk in selling for credit, but you can mitigate this risk by carefully screening your potential debtor before you extend credit. However, before you sell for credit, make sure you have a system in place to invoice clients and collect payment on time.