Month: June 2020

A while ago, two budding developers designed an exceptional problem solver for the age-old hassle and named it Udhaar app. To date, Udhaar app has acquired thousands of daily users and monetary transactions are recorded in millions of rupees. 

The store owners turned down the old and traditional paper clutters, and handwritten records because certainly, the loss was insufferable for the ones counting on the funds from several unknown customers who bought goods on credit along with a promise to pay the outstanding amount in a couple of days. Unfortunately, those customers didn’t show up only until the store owner himself suffered the debt. 

This unforeseen situation has put the small business owners out on the frontline thinking about a way out. This is when businesses realize that they need a digital solution. Paper registers and journals are the sorts of notes that you prepare and never look back to them. However, records on your mobile phone will be much more accessible and secure. 

The problem at hand marked the day for the Udhaar app. And since day one of the app launch, the popularity never stopped growing. People believed that they can trust Udhaar app with all their valuable information because the return had been improved dramatically. The security they found was mind-blowing and reliability spoke for itself. 

 

The Turning Point

Udhaar app is certainly not only for the forgetfulness of the people but it’s much more than that. Udhaar app gained popularity all because of the underlying features. Let’s go through them and understand the functionality.

 

Top-Class Management

Regular audits regarding the debts of your business are mandatory, but doing it manually is stressful and time-consuming without the use of technology. Your business could face trouble if payments are delayed or customers have defaulted and you could eventually go bankrupt. Oscar Udhaar, helps you keep track of your customers’ payment schedules and receive payment on time.   

 

The Invincible Errors

Without an advanced credit management app, your business has to manually review data and identify errors. In addition to this taking an unnecessary amount of time and energy, the risks associated with human error and data theft are significant. Thanks to Oscar Udhaar, hiring additional employees to analyze data is no longer needed and the risk of human error also diminishes. When you upgrade to an automated application, you are ensured that all data is entered into the system accurately and can be extracted on demand within minutes.

 

Safety and Security 

Protecting your customer’s data is a serious concern that requires your full attention. Your customers trust you with their phone numbers, business records, and other important information. Any mishap with this data and your customers get affected by identity theft or financial fraud. Moreover, the organization may have to face a public relations controversy and be exposed to lawsuits. Fortunately, Oscar Udhaar keeps all your customer information in the high-security cloud base and saves the information as soon as entries are made. It is a paperless process that can save your business good amounts of money otherwise spent on consultation.

 

The moment you start selling on credit, your sales become a mix of cash and credit. Some customers would prefer to pay cash while others would like to buy on credit. Selling on credit is a significant yet unavoidable part of every business. whether it be a small or large business, some factors will always push you into selling on credit/Udhaar. 

There could be multiple reasons why it becomes necessary to sell on credit. For instance, you may want to build a relationship with the customers, you may want to work on customer loyalty or retention or it may be a result of a competitive environment.

When you see your competitors offering credit purchase, it becomes even more difficult to decide whether to offer credit or not. Well, certainly you are left with no choice because of the possible threat of losing customers to rivals. 

Selling on credit is a habit – good or bad, that’s for you to decide – you get stuck with the moment you make the first credit transaction. Therefore, before you finalize your decision to sell on credit, you must dig deep into your decision and your future outcomes. 

 

You may have to check loyalty or trustworthiness of the customers you are dealing with and for that the basic requirement is the background check on their credit history. It’s easier for big brands since they already have the data required. On the other hand, small businesses may rely on their gut feeling or past experiences. 

 

Are Credit Purchases Right for Your Business?

Here are some pros and cons to help you decide.

 

Pros of Offering Udhaar

Gain More Customers

With more than one payment option, more customers will be able to buy from you. And, many customers prefer credit. You invite a whole new market of customers by allowing Udhaar. Offering an easy payment solution encourages customers to return to your business.

 

Get People Talking

Introducing something that benefits customers will always spread a positive word. If you decide to accept credit payments, spread the word and don’t be shy. Let your current and prospective customers know about your new plans.

 

Encourage Bulk Purchases

You are more likely to sell expensive products if you accept credit purchases. Selling large items becomes much easier if you allow customers to pay you later. 

 

Portrays Business Stability

Providing convenient payment options to customers makes your business appear more legitimate and established. Unlike a new, unproven business that is not financially stable to offer credit. 

 

Stand Up Against Competition

Selling on credit to customers gives you the competitive edge you need, not all businesses are capable to do that. Offer credit to give your customers and give a signal to your competitors that you’re growing.

 

Cons of Offering Udhaar

Missing Payments

The biggest risk  comes from giving credit to people who don’t return the favor. There are many customers who will pay on time, but there are also some who will always be late. 

 

Diligent With Records

Your accounting will play a significant role when offering credit to customers. You’ll need to create seperate accounts for each customer who buys from you. And, you need to track the numbers well, how long each customer takes to repay, how often they purchase on credit, and more.

 

Slow cash flow

You don’t have quick access to cash when you sell on credit. Instead, you have more products going out than money coming in. A stagnant cash flow will impact your ability to pay bills, especially when customers repay late.

 

A Simple Solution

All the cons you studied can be overcome and tamed with the help of a simple mobile application for credit management. For example, Udhaar App.

Udhaar app is a simple, free, and reliable platform to manage all your credit problems. Nothing to worry about if you have already started selling on credit. It’s very easy to use. Once you create a customer account and add an entry, Udhaar app will send an automated text to your customer informing them of outstanding balance. You can use it in different languages, prepare customer reports for week, day or months, send them reminders and what not.

 

Should you offer credit to customers?

Overall, the final decision about offering credit to customers should be yours. Remember, you don’t have to sell on credit to everyone. Many stores keep credit checks using the Udhaar/Khata app and only offer credit to customers who have proven they can make payments on time.