Who Should You Give Goods on Credit? A Simple Rule for Boutique Owners

The Golden Rule: Know Your Customer

The simplest and best rule for giving credit is this: only give credit to people you know and trust. Think about your regular customers, the ones who buy from you often and always pay on time, whether it's cash or transfer. You know their face, you know their name, and you know they are good for it. These are the people you can consider for credit.

For new customers, be very careful. Someone might look nice and promise the moon, but you don't know their history. It's better to ask them to pay in full first. If they are serious buyers, they will understand and pay. If they complain, it's a sign they might not be reliable.

This rule is especially important for boutique owners because your goods are often high value. A customer who owes you for a whole outfit could be a big loss if they don't pay. Think about it like this: if your friend asks to borrow N5,000, you’d likely give it to them. But if a stranger asks, you’d probably say no. The same applies to your business.

When is it Okay to Give Credit?

Even with people you know, it's wise to start small. If a regular customer asks for credit for the first time, consider giving them a smaller amount than they usually spend. See how they handle the repayment. If they pay on time, you can gradually increase the credit limit for them. This way, you build trust and manage risk at the same time.

Also, think about the reason for the credit. Is it for a special occasion? Are they a loyal customer who has been supporting you for years? These factors can play a role. But remember, good intentions don't always mean good repayment.

The biggest mistake traders make, especially in busy places like Oshodi Market or Balogun Market, is giving credit out of pressure or a desire to make a quick sale, without thinking about the risk. This can lead to money sitting with customers instead of being in your till for new stock.

How TrustAm Makes Credit Sales Easier and Safer

Now, even if you follow the rule of knowing your customer, keeping track of who owes what can be a headache. This is where TrustAm comes in. It lives inside your WhatsApp, so there's no app to download. When you sell on credit, you just need to record it. TrustAm makes it simple.

With TrustAm, you can:

• Record credit sales instantly: Instead of writing in a notebook that you might lose, you can record a credit sale with a quick text or voice note. You can even attach a photo of the customer's details if needed. This is much faster than trying to remember later when you’re busy serving other customers.
• Set repayment dates: When you record the credit sale, you tell TrustAm when it's due. This way, you don't have to keep it all in your head.
• Get automatic reminders: On the due date, TrustAm can send a polite reminder to the customer. This helps them remember to pay and reduces the awkwardness for you. It also has a "pay button" that makes it easy for them to send money straight back to you. This is part of its excellent debt tracking features.
• Track payments: If a customer makes a part-payment, you can record that too. TrustAm shows you exactly how much they still owe, and when the debt is fully paid, it closes itself.
• See who owes you at a glance: You can check your debt book anytime to see the total amount owed to you, and how long each debt has been outstanding. This helps you manage your cash flow better.

What About Fake Alerts?

One major worry with any sale, especially credit sales where you might accept a transfer later, is fake alerts. TrustAm tackles this head-on. Every payment request you send through TrustAm has a unique account number that expires in 24 hours. When money comes in, both you and the customer get an instant, stamped receipt. This is what stops fake alerts because there's no way for someone to fake a receipt that matches the actual transaction in your TrustAm account. This is a key part of how TrustAm helps you avoid shop fraud.

For cash sales too, you can log them with a voice note or simple text. TrustAm captures the exact amount, so there's no confusion later. This ensures your records are always accurate, which is vital for understanding your business performance. Proper business record-keeping is not just about taxes; it's about knowing your money.

Can TrustAm Help With Other Sales?

Yes! TrustAm is designed for all your sales. You can create payment requests for customers who want to pay upfront. These requests come with a unique account number for each order that expires in 24 hours. This helps enforce exact payment amounts and prevents confusion. It’s a much better way to handle payments than the old POS methods that often fail or have high charges. Think of it as a smart way to do payment collection without a POS terminal.

TrustAm also has a customer book that fills itself. It keeps track of every sale made to each customer, whether it's cash, credit, or transfer. This means you can see who your best customers are, who has gone quiet, and even get nudges to reorder popular items. This is part of its powerful sales tracking capabilities.

For boutique owners, managing stock is also crucial. TrustAm's inventory management feature counts down your stock as sales are made. You get alerts when items are running low and even guidance on what to restock based on what's actually selling. It can even flag dead stock after 90 days, so you don't tie up your money in goods that aren't moving.

Final Thoughts for Boutique Owners

Giving credit is a tool, and like any tool, it needs to be used wisely. The rule of thumb remains: know your customer. Trust them, but verify. Start small with new credit customers, and always, always record every single sale, whether it's cash or credit. This is how you protect your business and ensure it grows steadily.

Using a tool like TrustAm means your records write themselves as you get paid or record credit sales. There's no app to download, and it all happens within WhatsApp, the tool you already use every day. This means you can focus on serving your customers and growing your boutique, instead of getting lost in paperwork.