Kia aap koi business ya dukaan chala rahe hain? Jese kiryana store, medical store, sabzi ki dukaan, mobile ki dukaan, mechanic ki dukaan, stationary shop, ya kuch or?
Agar han, to ap ko Udhaar ka masla zarur pesh ata hoga jab customers choti bari chezen Udhaar par le jate hain lekin kisi waja se lotana bhool jate hain. Continue reading
Apni dukaan ka lain dain or munafa barhane ka sab se acha tarika hai ke 1 digital credit management system ko khush-amdeed kahen. Dukaan ka Udhaar sar ka dard ban sakta hai jab ap bhool jaen kisne – kis din – kitna udhaar par saman lia tha.
Khush-kismati se technology ne is problem ka hal bhe nikal lia or 1 shandar ap banai jis ka naam Udhaar rakha, takey jo dukaandar Udhaar par saman bechte hain, un ke nuqsaan ko kam se kam kia jae or Udhaar par business ko asaan bnaya jae.Continue reading
Ap ke karobar mai finance management software, inventory management software, or apke business ka saathi Udhaar app, kisi naimat se kam nahi. Tamam dukaandar, dukan ke malkaan or hara tarah ka karobar karne wale log Udhaar App se faida utha rahe hain.Continue reading
Trade on credit often motivates customers to pace up and increase the amount of their spending that otherwise may not be possible. Some businesses choose to offer credit and gain a competitive advantage in the industry. Maintaining a balance between increased sales and the risk of reduced cash flow is a significant part of risk management in your business.
Considering the nature of your business and number of transactions, you may choose not to offer credit to new customers. Before offering a credit facility, understand the following.
What sort of risk comes along with offering credit
Waiting for customers to pay reduces your ability to order new sets of inventory from suppliers. Many businesses also consider debt financing to reduce this risk.
Providing credit sales often reduces your profit margin and the worst part is, the cost of this only appears in your financial statement. So, you better study the pricing of your products and services before they backfire.
Several outstanding debts can pose a risk to your business. This particularly happens if you are exposed to various single transactions.
Perform A Credit Check
A credit check is one of the strategies you can use to fix the risk of bad debt. Before you sell goods on credit, have them complete some sort of contract and sign a credit application form to denote consensus.
What to collect from individuals:
What to collect from corporate clients:
Another way to perform a credit check easily is to automate the process. Preferably for small businesses that sell to individual customers every minute.
A credit management application to note down every transaction as soon as it takes place and sends a message to the customer mentioning the details of the transaction and the deadline to pay their dues.
Udhaar App is a simple, easy, and reliable business application for personal and commercial use that manages your daily business khata efficiently and offers features such as free SMS reminders, daily, weekly, and monthly account statements, notes, and whatnot.
Keep a track of debtors
You can either use Udhaar App if you want to be things as simple or you can use a good filing system to keep track of customers. This will assist you to follow up outstanding payments and keep balanced cash flow.
This article will cover some of the best ideas for you to steal and implement in your business for faster growth. They are all practical ideas from the most successful businesses along with some action steps you can imitate and run with right away, without any research, test, or otherwise delay implementing. Moreover, there’s no need to spend money to see them into action.
Pick the easy ones that are most effective for your business, and don’t hesitate to contact us if you face any problem or have difficulty implementing them because this is the time when we all have to work together.
To ask for payment professionally, businesses, whether small or large, should always forward their payment requests using polite tone but in a straightforward language. Give the client the benefit of doubt and make sure they received the invoice in question. Small businesses should follow up periodically by email to ask for payment and if the client still does not clear the outstanding dues, the next step should be to speak to the customer by phone before considering cutting off future relations with the client or filing a lawsuit.
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.
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.
Purchase on credit is a common practice in Pakistan. No matter the size of your business, people always have that bunch of clients who are used to paying late. Whether it’s a customer who constantly crosses the deadline or that one-timer who completely gets away with it, dealing with these customers can be pretty stressful.
Though it’s not a recommended practice for any business to sell goods on credit, however, sometimes owners get lucky and those one-timers become life-timers. Moreover, there are several examples of businesses that solely run from trade on credit.
Reasons Why Customers Pay Late
Low Priority
Lack of Urgency
Tough Times
Here’s How You Deal With It
Understanding the reason behind late payments is only the first step towards achieving a resolution. Once you recognize where customers are coming from, you’ll be able to make better choices for your business.
State Your Terms Up Front
Consistent on-time payments start with setting clear conditions on the front end. Before you start any project, the client should exactly know the cost, when the payment is due, and what happens in case of a breach.
By clearly mentioning the terms and getting the customers to agree to them, you minimize the chances of excuses. After all, it’s much difficult for a client to feign ignorance when there was a clear conversation about the issue.
Personalize the Follow Up
Any type of follow up is better than no follow-up, but be careful when sending automated emails or phone calls to clients. While they prove to be a decent reminder to the customers, they don’t do much in terms of provoking urgency. By personalizing the follow-ups, you make sure they know that there’s a face behind the late invoice and encourage them to step up and make the run for it.
A Little Help From Technology
You can go take the harder way or you can think about it and work smart. There is a possibility that you keep on sending automated emails and phone calls to your customers and they still don’t respond. Maybe these emails are the reason this matter loses its urgency or becomes less important to clients.
The easiest solution for me is a mobile application that keeps records of all your transactions and sends auto-reminders to customers to pay their debts. These aren’t just auto-reminders, you can customize your message with a little bit of love and simplicity and send it to your clients without any hassle. You won’t even know it and would get your payback even before the deadline. One such app is the Udhaar app.
Udhaar app is an online ledger (like an online khata or journal) to record your outstanding debt, and send auto-reminders to customers to fasten Udhaar collection. It’s your business’ personal Khatabook that holds every little information about your transactions. Udhaar is an easy, safe, and reliable app with amazing features like reporting, multi-language support, data backup, offline mode, and many, many more.
There are a lot of troubles that come with being a business owner or running an organization. Managing and organizing business paperwork – seemingly easy tasks – shouldn’t be one one of them or shouldn’t be there at all.
Several entrepreneurs find themselves shackled with documents. These can be contracts, financial statements, spreadsheets, reports, employment applications and records, insurance policies, invoices – you name it. From the important to the minuscule, the paperwork clutter seems never-ending.
Bringing some management to your important documents can give you increased clarity about what’s in the drawer, what’s in the trash (and what’s missing) and a greater supervision over the administration of your business. Moreover, you can stress less when you are actually looking to find something.
Let’s establish a system that you can work with. Here are some of the very common yet important steps to enhance your paperwork management from messy to meticulous.
Get the Equipment You Need
Out of the chaos, the last thing you want is to scatter all your documents across the desk just to realize you can’t find what you need to get the work done. So, before you get on to work, ensure you have access to all the requirements. The items include:
What you require is dependent upon your existing system, organization, and goals. The point is to ensure you’re all set for the task before diving right into it.
Create Viability
Consider this your rule of thumb of organizing paper clutter: The lesser you touch a piece of paper, the better. That means you have to come up with a system to file those documents before you start sorting them out.
There are numerous different options to categorize them:
A good filing system should be intuitive. So, if you’re struggling to figure out the approach to tackle this, ask yourself: What would I first search if I were looking for this item in the future?
Whatever system you create for your documents, use the same one for your soft copies (computer files). You will eventually identify the most suitable approach to managing and separating those documents. Your future self will thank you.
Begin With One Area at a Time
You probably have documents scattered at a lot of different places. Perhaps there’s your filing cabinet, the growing pile on your desk, your tangled web of computer files, plus all of the important paperwork that’s hanging out in your email inbox.
This can feel overwhelming, so make the process more manageable by starting with one area at a time.
Tackle that filing cabinet first before moving onto the loose papers scattered around your office. Doing so means you’ll conquer this project methodically, avoid missing anything important, and maintain a cohesive system as you move through each of these storage locations.
Easy Way Around
If you can’t do it the harder way then do it smartly. Leave everything aside and trust the technology. When I say the word “technology”, I certainly don’t mean software, programs, coding, design, and, etc.
What I simply trying to say is, look around there are easy things available everywhere like simple mobile apps. For instance, Udhaar app.
About Udhaar App?
Udhaar, a simple tool for personal and commercial use. Udhaar app manages credit (Udhaar) with customers and suppliers.
Udhaar app is an online ledger (like an online khata or journal) to note your outstanding debt, and send reminders to customers to improve collection and cash flow. It’s an easy, safe, and reliable app with outstanding features like reporting, multi-language support, data backup, offline mode, and many, many more.