1. Build Your Rep
When your company can offer net terms to customers, it says something to the world. It proves you are financially healthy, because only companies with good cash flow can extend credit. People immediately view you as a trustworthy financial source.
2. Show Some Love
Your customers deserve praise. They’ve chosen to do business with you and without them, where would you be? Net terms are a great way to say thank you to your customers. By extending them credit, you are allowing them to have more control over their cash flow. And as a business owner, you know that is one of the greatest things you can have.
3. Be Proud
A lot of owners fear that they will provide their customers with goods or services, the customer will dislike what they received and will refuse to pay. However, have faith in your product or service. If you know for fact what you provide is awesome, than don’t even think twice about whether or not your customers will. That shouldn’t even be a thought. Be proud of your product and know for a fact people will be delighted to pay for the wonderful experience or item they were offered.
4. Beat the Competition
Everyone’s always looking for a way to get a leg up on the competition. Extending credit is just the way to do so. As you know, net terms give your customers a huge advantage: cash flow control. If a customer is presented with two different companies, one that offers credit and another that does not, they will always choose the one who extends net terms. So, if your competition is not extending credit, you can gain an immediate edge by doing so. And if they are, you better do so as well, so they don’t get the leg up on you.
5. Make More Money
Who doesn’t want to increase sales? Extending net terms can do just that. If you offer your customers more time to pay, you are ultimately increasing their buying power. With more time, they are physically able to purchase more. You attract customers by the offer and then enable them to make larger purchasing decisions. It’s an incredibly savvy sales move.
If extending credit can work with your business model, start immediately considering offering the option to your customers. It’s hand down the easiest and most cost-effective way to impact you business’ success and financial well-being.
About the Author: Meredith Wood holds down the community fort at Funding Gates, the first ever online credit department for small businesses. By automating the entire collections process, Funding Gates serves as a one-stop-shop for accounts receivable management. Always looking for good talk on small business, connect with Meredith on Twitter @FundingGates.