Fiar means, among other things, “selling (something) without charging it until later.” That is, it is to sell (something) on credit. How many times we have gone to stores, of all size and type, and we find the classic signs referring to “today does not trust and tomorrow either …”. All these establishments are being lost from a lot of successful sales. If your competitor gives credit, knowing how to do it well, you will eat the business to the other, there is no doubt.
Here an example that I mention in the free financial education conferences that I teach and that they can ask for writing to (email protects): Imagine for a moment that I am a refreshment that we will call, by my name, “Wolf soft drinks”. Wolf sodas needs supplies to make its drinks, sugar for example. Wolf sodas does not want to pay cash sugar, it is more convenient to pay it through an account receivable, say, 90 days. An account receivable is an invoice that is paid for a defined period. 90 days of financing gives enough time to Wolf soft drinks to produce their drinks, distribute them and sell them, thus having the necessary liquidity to pay the credit and obtain their gain.
Wolf sodas then decide to approach two companies that sell the sugar they need: “green sugar” and “red sugar.” Green sugar is a legally constituted company that has credit activities or similar to credit; In this case, sell sugar on credit.
Green sugar works with credit bureau; Before lending, he asks for permission from his potential client to consult his credit report to find out if the client is reliable and has liquidity. It also consults other services that help you even more administer the risk.
Wolf soft drinks asks green sugar a thousand tons of the sweetener on credit. Green sugar consults Bureau of Credit and realizes that soft drinks is a reliable company, always pays its commitments, that allows you to quickly lend it. In addition, as Wolf sodas is low risk, green sugar decides to give it a discount for ton looking for the refreshment to only buy her inputs. Once credit is awarded, the sugar reports the credit to Bureau of Credit to further improve its probabilities of payment compliance.
At the same time, Wolf sodas also visits red sugar and asks there for another thousand tons of sugar on credit. Red sugar is in a dilemma because it does not work with a credit bureau and does not know whether to lend or not. Red sugar lacks the most basic information on the reliability of the refreshment. You can’t even answer the question “Will it be a good payer?” And since he does not report his accredited, the client may not feel so motivated to pay because the logical thing would be to give payment priority to the credits of companies that if they report to Burero de Credit. And if the client does not pay, red sugar would be delayed in the payments of their own commitments and if the situation is serious, it could stop operating. Better decides not to lend, it will not be that of bad, and thus it is lost of a good business that would have represented Wolf soft drinks who now will only want to work with green sugar.
As we see in this simple example, it is clearly convenient to rely on credit bureau to do more and better businesses. Companies of all kinds and of all size that make it better, generate greater wealth, more and better jobs, contribute to the development of the country with the payment of their taxes and also meet the needs of their customers.
Credit bureau services are very wide because there are not only tools for loan origin, but to make cross sales, make strategic planning to place loans or credit services or it is even very useful to campaigns, you can monitor and monitor the portfolio and even more efficient recovery strategies can be made. To learn more about everything that bureau of credit can do for companies and to participate in Specialized Webinars I invite you to visit www.burodecredito.com.mx section “Credit grantors”.
About the author:
Wolfgang Erhardt is a national spokesman for Bureau of Credit, spokesman for the Latin American and Caribbean Association of Burós de Crédito, and author of the book “I want a loan! How to obtain and keep it.”
Twitter: @WolfgangErhardt
LinkedIn: Wolfgang Erhardt
The opinions expressed are only the responsibility of their authors and are completely independent of the position and the editorial line of Forbes Mexico.
Follow business information and today in Forbes Mexico
