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

How to know who to give credit to in your fashion shop

The simple rule is this: Give credit only to people you know for sure will pay you back. This means people you have known for a long time, people who have bought from you before and always paid on time, or people who have a good reputation in the area. If you don't know them well, or if they look like they might run away with your goods, it's better to say no. Your money is precious. Don't let it scatter.

Think about it like this: If you were lending cash, would you give it to a stranger you just met? Probably not. Selling goods on credit is the same thing. It's your money tied up in those clothes. You need to be sure you will get it back so you can buy more stock, pay your rent, and feed your family.

For fashion store owners, especially those in busy markets like Balogun Market or Oshodi Market, the temptation to give credit is high. Customers see beautiful dresses, nice shoes, and want to take them home. But if you give credit to too many people who don't pay, your shop will soon be empty of goods and money. You need a system. You need to know your numbers. That's where TrustAm comes in.

Why giving credit can be dangerous

Giving goods on credit without proper records is like walking in darkness. You don't know who owes you, how much they owe, or when they are supposed to pay. This can lead to:

• Lost Money: Customers might forget, or deliberately refuse to pay.
• Lost Goods: If they don't pay, your goods are gone, and so is the money you used to buy them.
• Cash Flow Problems: If your money is stuck with debtors, you won't have cash to buy new stock or pay your bills.
• Stress and Worry: Constantly chasing people for money is tiring and can affect your health and business.

This is why knowing who owes you is so important. It's not about being mean; it's about being smart with your business. You can learn more about how to track sales and debts easily, even if you're a busy owner like those in Uyo.

How to manage credit sales without losing track

Okay, so you've decided to give credit to a trusted customer. What next? The most important thing is to WRITE IT DOWN. Don't rely on your memory, especially when you're busy. Every single sale on credit must be recorded immediately.

With TrustAm, recording a credit sale is as easy as sending a WhatsApp message. You can just type or even use your voice note to say, "Sold one blue Ankara dress, size 12, to Mama Ngozi, balance ₦15,000, to pay next week Friday." That's it! The system records it for you. It goes straight into your debt book. You'll see exactly who owes you, how much, and when it's due. No more scribbling on paper that gets lost or faded.

When the payment date comes, TrustAm can even remind you politely to chase the customer. And when they pay, the debt automatically closes itself in your records. This makes keeping your books clean so much easier than the old way. It's like having someone follow you around, making sure every transaction is captured.

The 'Test Drive' Method for New Credit Customers

For customers you're not 100% sure about, use the "Test Drive" method. This means giving them a very small amount of credit first. Maybe just one small item, or a small amount of money. See how they handle it. Do they pay on time? Do they communicate if there's a delay?

• Start Small: Offer credit for an item worth maybe ₦5,000 to ₦10,000.
• Set a Short Deadline: Ask for payment within 3-7 days.
• Monitor Closely: Keep a close eye on the payment.
• Reward Good Behaviour: If they pay promptly, you can consider them for slightly larger credit next time.
• Cut Them Off if They Fail: If they miss the deadline or pay late without a good reason, stop giving them credit.

This way, you build trust with customers who prove themselves reliable, without risking a large amount of your stock or cash. It’s a safer way to grow your credit business. This is much better than the old days where people just wrote things down on any piece of paper they could find, hoping for the best.

What if someone doesn't pay?

If a customer you gave credit to doesn't pay on the agreed date, the first thing you should do is contact them. Sometimes, they just forgot. A polite message or call can solve the problem. But if they start making excuses or avoiding you, it's time to be firm.

With TrustAm, your debt book shows you exactly who is overdue. The system can even send a polite reminder message with a pay button for them. If they still don't pay, you might have to stop giving them any more goods on credit until they clear their debt. It's not personal; it's business. You can't keep feeding someone who isn't paying for the food.

Remember, selling on credit is a tool to help your business grow, not a way to give away your hard-earned money. Be smart, be careful, and always keep good records. Knowing who owes you is just as important as knowing your sales figures. If you're tired of guessing, TrustAm can help you keep your records without slowing down your business. It's all done right inside WhatsApp, so there's no app to download.

TrustAm for your fashion store

TrustAm helps fashion store owners manage their sales, track who owes them, and know their numbers. You can record sales on credit, send payment reminders, and even get a daily summary of your business performance. It's the easiest way to make sure your money is safe and your business is growing.