Credit sales and cash sales are currently a great tool to promote the economy, as well as these two options.Advantages of cash sales and credit sales in your day, include that they make your business have a different face, always attracting new clients for you.
So, if you have a business or are starting one, this post is for you to know advantages of cash sales and credit sales. To begin, we will delve a little deeper into the concept of credit sales.
What are credit sales?
When we talk about credit sales:
We are referring to a type of transaction or operation in which the buyer tries to delay payment until a later date.
For this to work your seller usually determines this date when making a sale, credit sales should don’t confused with cash sales, when you pay with cash at a later date, it is not yet a cash sale.
We refer to sales in effect when the user or buyer makes a purchase and pays the entire purchase instantly with cash, to explain it a little better, a clear example would be.
If you go to the clothing store on September 9 You like some Jean. And you decide to buy them with the promise that you will be able to pay them on September 26.
It is there, at that moment that you are making a credit purchase. That is, the store is making a sale on credit. In short, when a sale is made on credit, you can take the item you wants a long a you agrees with the seller when he will pay the full cost of the garment, thats one of the best advantages of cash sales and credit sales.
The seller must place his trust in the buyer and trust that he will return to pay him what he owes.
When the buyer decides to pay the cost of the item they have chosen, they can pay it using any payment method.
Be it credit cards, debit cards, cash, whatever you are going to use to pay.
Often when making sales on credit, several terms is used.
That are necessary to be more efficient when completing the sale.
Here are some of these terms.
Often when making sales on credit, several terms is used
that are necessary to be more efficient when completing the sale.
Here are some of these terms.
Terms used when making a sale on credit.
Among these are: a / b net c
In the first place, a it refers to the possible discount that the customer may receive if he pays the amount that the product costs, within the duration of the discount.
Second, b is the duration of the discount.
And finally c is the time when the term will expire and the customer will have to pay for the sale.
When this period has expired, the buyer will not receive any discount.
To explain this to you better, we have a credit term of 5/15 net 30, which means that the client will receive a 5% discount if he pays within the first 15 days, and whose payment deadline is 30 days.
Advantages of credit sales.
Among the advantages of credit sales we have that when a company is starting, this is a great tool to attract new customers.
Since they will have an incentive to buy there.
Second, credit sales enable customers, especially financial customers.
To generate cash on the merchandise before paying the full cost to the seller.
And finally, when a company implements this modality.
They tend to increase sales positively, since in this way you are attracted.
Continuing with the topic, let’s now know a little about cash sales.
When you talk about cash sales, you express yourselves to all those operations in which you make the payment of the product or products is made delivery.
As you can see, this is completely different from credit sales, since in one you pay immediately while in the other you pay days later (credit sales).
Like this sales system, you can buy all kinds of products instantly, and although they are generally low-cost merchandise.
you can also buy products with a higher cost.
It is very important to clarify that you can no only payments by cash, on the contrary.
You can make cash payments with debit cards, credit cards, checks, bank transfers, with any payment method.
As you can see, this is an excellent system for making sales.
Advantages of cash sales
Among the advantages of selling a cash product, is that thanks to this method we have the possibility of quickly obtaining the money for the merchandise for sale.
In this way, having the money already in our accounts, we can invest it again and get some higher profit.
When you make a purchase on credit.
People do not worry about having to pay much more interest or commission charges.
In addition to that you can offer discounts, since they are paying you immediately, thus achieving with this.
Attracting more customers to your business and cultivating customers for your whole life.
To conclude, these two accounting operations are great tools that will help you boost your business.
In an incredible way by attracting as many clients as possible.
But just as each one can help you, they can also stagnate your business.
If they don’t have the necessary tools and knowledge.
To implement this sales systems, let yourself be guided by your accounting operator.
So that he gives you the necessary instructions to succeed and be successful in this work environment.
If for some reason or another you are implementing one of these sales systems and they do not work for you.
Add more tools, promotions, discounts, implement different strategies so that your business finishes reaching its maximum point of victory.
I hope this post has been very helpful for you and we have been able to clarify your doubts.