How to manage customer credit without losing money
Credit builds loyalty, but a badly kept book eats your cash. The goal is not to refuse credit, it is to know at any time who owes you what, and since when.
Set clear rules
- Only give credit to customers you know.
- Set a limit per customer, based on what they can repay.
- Decide on a deadline (one week, end of month) and say so from the start.
- No new credit while an old one is overdue.
Keep a reliable book
Every credit sale must be written down at the time: customer name, date, items, amount. Every repayment too, with the payment method. An exact balance then calculates itself: credit purchases minus repayments.
A paper book gets lost and disputed. A digital book keeps the history and can be shown to the customer.
Remind without offending
Mention the amount and the date rather than demanding: “Your balance has been 4,500 since the 12th, could you drop by this week to settle it?” A polite WhatsApp message sent early beats an awkward request three months later.
Credit is not money received
In your evening accounts, a credit sale counts in revenue but not in cash. Only spend what you have received, and track the total owed like a stock of money to recover.
Kaislo’s credit book
Kaislo keeps each customer’s book: credit purchases, partial or full repayments, balance owed and repayment receipt. The Excel report lists every customer who owes you money.
Sales, stock, customer credit and evening accounts in one place, on phone or computer. 30-day free trial.
How to manage customer credit without losing money
How do you limit unpaid debts?
Cap credit per customer, set a deadline, record every credit sale immediately and send a reminder at the first delay.
Does credit count in revenue?
Yes, the sale is made, but it is not money received until the customer repays.