How to improve credit granting in your store

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jisansorkar8990
Posts: 54
Joined: Thu Dec 26, 2024 5:09 am

How to improve credit granting in your store

Post by jisansorkar8990 »

Granting credit is a fundamental process for the development of the economy, as it increases the consumption capacity of a portion of the population that would have no other way of acquiring certain goods.

In releasing credit to an individual, the lender is essentially job seekers database making an investment based on trust .

Whether it's a bank that lends money or a store that sells on credit, the lender needs to trust the borrower's ability to pay .

But this “trust” cannot be based solely on a feeling or a subjective impression.

It is necessary to have well-defined processes and specific tools to grant credit without losing money!

And banks are experts in this, aren’t they?

But it is not for them that I wrote this article.

If you are not a bank, but you are betting on installments to boost your store's sales , it is worth reading on and learning some secrets about granting credit in retail.

Let's go?

The process of granting credit on your own credit account
In Brazilian commerce, there are basically two types of consumer credit: credit card and installment plan.

I have already written on other occasions about the advantages of selling on credit compared to using a card .

Therefore, I will only talk here about the process of granting credit to customers in stores that work with their own credit.

To be truly efficient and profitable for the store, this process must involve two fundamental points:

a reliable credit analysis technology
the retailer's perception to understand the difference between the default of new and old customers
In the following video, I explain these two points in more detail:

YouTube video
Identify risk at the time of sale
When talking about granting credit on your own credit account, the first thing we have to understand is the need to analyze the customer at the time of sale .

It is precisely at the beginning of the process that we will be able to identify whether or not this client is a good payer.

In other words: whether or not you will have additional costs with it later on.

And what do I mean by “additional costs”?

You know. Mainly collections and negative listings .

I will cite as an example a model that we work with here at Meu Crediário .

We classify customers using a credit score that classifies each of them into risk profiles ranging from letter A to letter E.

The closer to A, the lower the risk of default on that sale.

And the closer to E, the greater the risk.
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