How to give credit to customers

Giving credit to customers (selling on credit) is a way of increasing sales or maintaining business relationships with a customer; however, it can also mean liquidity problems or the possibility that the customer to whom the credit was granted will not be able to pay it.

Therefore, before making the decision to give credit to clients, it is necessary to establish a clear credit and collection policy, evaluate well the client requesting the credit, clearly establish the credit conditions, among other aspects.

Whether our company is a supplier company or a small business where clients occasionally tell us that they will only be able to pay us within a month, let's see below a process that will help us to give credit to our clients without incurring major risks:

1. Establish credit and collections policy

First, it is necessary to establish a clear credit and collection policy that includes the maximum level of credit that we can allow, and the terms that we will provide for the payment of the credits.

To establish these guidelines we can take into account the credit purchases that we make, ensuring that the debts we have with our suppliers are paid with the money from collections, and thus there is no need to use our own capital.

Although we could also take into account the practices commonly used in our business sector (for example, our clients may be used to working with 30-day credit policies), as well as the impact that credits could have on our cash flow.

Other lines that our credit and collections policy should include are the means of collection to be used, those in charge of the collections, and when it is possible to grant credit (that is, what are the requirements that a client must meet so that it can be sold on credit).

2. Evaluate the client

The next step is to evaluate the client who requests a loan from us. New customers should be well evaluated, but old ones should not be neglected no matter how long we have been working with them for years.

Something to keep in mind is that a client who always buys from us in cash for increasing amounts does not mean that the first loan he requests from us will also be paid with the same solvency. Every client who requests a loan from us for the first time should be well evaluated. The following are some data that we should collect and evaluate before making the decision to grant a business loan leads to a client :

your basic information.

your experience in the market.

its growth potential.

your credit history.

your financial situation.

your ability to pay.

And to obtain this information, some sources that we could turn to are:

Government agencies.

risk centers.

other providers that are not of the competition (when requesting customer references).

the same client (for example, by requesting their financial statements).

3. Determine the credit to be granted

Once we have evaluated a client and determined that he is worthy of credit, we proceed to determine the credit that we are going to grant him, as well as its conditions (which must be accepted by both parties and, if possible, put by written in a contract).


To do this, we must bear in mind that each client is different and that our credit policy should not necessarily grant the same conditions to all our clients.


Some aspects to take into account when determining the credit to be granted to a particular client, as well as its conditions, are their usual sales and purchases, their liquidity, their assets, liabilities and equity, and the credit history they have had with us in case of having previously granted you some credit.

4. Collection of credits

Once the credits have been granted, we proceed to collect them.
First of all, we establish who or who will be in charge of making the collections. If there will be a person responsible for the collections or if the person in charge of making the collections will be the same person who made the sale.
And then, we make the collections effective, taking into account the other guidelines established previously in the credit and collections policy.

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5. Evaluate credit and collections policy

Finally, we proceed to evaluate our credit and collections policy to see if we have an efficient system, or if it is necessary to make some modifications.

It is advisable to carry out this evaluation of the credit and collections policy approximately every six months. Some aspects to take into account when evaluating our credit and collections policy are the efficiency of the system, the new financial situation of the company, the new situation of the economy in general, changes in the market, new policies of the competition, etc.

Are there many ways to clean the grates?

It is known that the methods to clean the grates will depend a lot on the material of which they are composed. If we remember what previously, we analyze what types are divided into parts. Now let's take a closer look at the cleaning methods that are most effective.

For example, we have the most popular cleaning method for cast iron grates, as the easiest way to do this is to live in a house or farmhouse that has a fireplace. The grate must be placed over the fire, turning it periodically until the grease and dirt disappear little by little. Finally, wipe off any remaining residue with a slightly damp cloth. But if you live in an apartment, you can turn on the kitchen and put in the grill, but you should make sure to open the windows for ventilation.

In addition, housewives who like to innovate are suggested to use a brush that is not very resistant placed in a drill. After being installed on the tool, turn on, and proceed to brush over the surface of the rack to achieve the desired result.

you can read also this following article best dish drying mat

However, if your family owns a car, you can also use the car engine cleaner, it should be noted that it should be applied on a sponge first and then very carefully wipe it on the grill. Finally, it only remains to rinse with plenty of water and dry it well.

For those grates that are made of enameled steel, the easiest cleaning method is by placing the grill in a dishwasher, if the contamination is small, placing it in high-temperature mode will do. If the dirt is deeply ingrained, you will have to use additional soda tablets.

Soda is good and in the absence of the machine to wash dishes. You can put the rack in a large, durable bag and feel free to pour a packet of baking soda into it, then fill it with warm water. Make sure to tie the bag, leave the rack in there for several hours. Later you just have to rinse and dry well. As long as the dimensions of the lattice allow, you can soak it in the sink, after closing the drain.

If you want to save the situation, you can help yourself with soap. For this, you will need a container in which to fit the rack. It will also be necessary to prepare a strong soap solution, and then leave the rack to soak overnight.

However, if you are not one of the fanatics of prolonged mechanical work, you can prepare one of the pastes that can help you face this task, which you can do in this way:

Use 100g of laundry detergent, mix it with 30ml of ammonia. Apply it to metal and then wash well after 20 minutes.

Prepare a suspension of hydrogen peroxide and baking soda, grate well and rinse well.

Mustard powder diluted with 9% vinegar, as well as a small amount of dishwashing liquid. This paste is applied to stainless steel. After 25 minutes, clean with running hot water.

 

In addition, the most reliable way to clean the grate is to soak it initially and then clean it using household products with a stiff brush and then perform a thorough wash.

Some tips or tricks that will be very useful

Take into consideration this series of tips that will be very useful when cleaning the grill without damaging it:

Never immerse the cast iron grill in liquid or wash it in a dishwasher as the material may crack and lose its strength.

Any metal starts to break if you put a hot rack in cold water or solution. We advise you to cool it down before cleaning.

Do not try to vigorously scrub the surface with metal brushes. Be aware that this will destroy the material.

It is necessary and important to dry the grate every time it is cleaned.

To facilitate further cleaning, the following method can be used. First, you need a transparent stationery glue (50 ml), washing powder or detergent (2 tablespoons), soda (150 g). The ingredients must be well mixed and the final composition will be applied to the grid. After drying, it disappears from sight. All that is needed during the next cleaning is to clean the applied layer, thereby reducing contamination.

The easiest way to keep it clean is to wash the rack after each cook and for steel racks, soak once a week in soapy water.

You can submerge the racks not only in a separate container but also in the bathroom and in the sink.

If you can't achieve the desired result the first time when you apply the product, don't despair, just repeat when the opportunity presents itself.

However, with each of the above rack cleaning methods you can tackle the task, the difference will be reflected in just the time and effort put into it. The choice of household products or chemicals made by well-known brands is always yours. The kitchen is believed to be the face of the housewife. If you are one of the people who does not regret a few minutes for the daily cleaning of the grate, you will not have to be upset by a nasty residue. This not only spoils the appearance, but also the state of mind. Even dishes cooked in pleasant and clean conditions become tastier.

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