Most people will advise you to make sure you don't give out credits - saying that credits can ruin your business. They'll tell you that you have to stiffen your hands when it comes to giving out credits. They'll tell you that people will run away with your money when you do this.
It's common knowledge that - giving is always a great thing. When you learn how to give to people when they're in need, you tend to create a strong connection between yourself and such a person. In most cases, even after they've paid you back, they feel indebted to you.
This is one big reason why you see customers keep on coming back to a particular businessman. But there's something important to note about this - you have to place a limit, an amount when reached, you won't give any more credit to a particular customer.
Many very successful businessmen have mentioned that giving credit facilities has been a powerful strategy to boost their sales. This strategy works because most business people will rather patronize a person that will give them credit if they happen to need it.
Also, we've seen cases where someone has been patronizing a business for so long; but when on one day, such a loyal customer asked for small credit, and they were denied; such a customer tends to feel disappointed, and may stop patronizing. Basically never give out credits too big. This strategy helps creates customers for life. Successful businessmen will say - if they don't pay you back, they can only beat you once.
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