How to sell goods on credit

Video: Accounting Entry for Credit Sales 2024, July

Consumer lending today, in spite of everything, is not losing ground, but on the contrary, is becoming, perhaps, the only type of sale of durable goods in retail. How to start selling retail goods on credit?

Instruction manual

Choose a bank. Conclude an agreement with the bank on the organization of cashless payments. Present to the bank the same package of documents as when opening a current account (statutory documents, certified copies of your passport, TIN). The agreement must necessarily stipulate the procedure for transferring funds to your account after making a purchase.

Equip a workplace for a bank representative in your store or involve your employee in applying for a loan by concluding an additional agreement on his training with the bank. The buyer will have to conclude an agreement with you (for the sale of goods) and with the bank (for the provision of a loan). The necessary interest on the loan amount is taken from buyers in favor of your trading organization, taking into account current bank rates. If in the future the bank changes the terms of lending, then interest is not recalculated.

Upon receipt of money in your account, the buyer’s debt to your trade organization and your store’s debt to the bank are simultaneously repaid.

Please note: the purchase by the buyer of goods on credit does not deprive him of the right to exchange or return the goods. In the event that the buyer returns the goods, your trade organization will have to pay the loan to the bank.

Choose a bank that offers the lowest interest for processing and transaction support. In this case, you yourself will provide installments and subsequently pay the bank. Take a loan to buy goods. Buy in bulk goods.

Make a contract according to which the buyer will pay at least 30% of the cost of the goods when purchasing. Set the price of the goods the same as when selling for cash. Of course, in this case, not all customers will want to make a purchase on credit, but you can protect your store from risks.

How to return the goods purchased on credit to the seller?