Is your customer really loyal to your business?

Or just to the credit you offer?

You might be winning orders while quietly financing your customers' businesses with your own cash.

Think about it.

You offer 30-day credit to win a customer.

They ask for 60 days.

You agree because you don't want to lose them.

Meanwhile, your suppliers want payment in 30 days.

Your employees need their salaries.

Rent, fuel and other bills won't wait.

Your sales are growing, but your cash is trapped in unpaid invoices.

And when you finally ask for payment, the customer starts avoiding your calls.

That's the hidden cost of confusing credit with loyalty.

Trade credit can help you win customers.

But without clear limits and consistent follow-up, it can strain the very business you're trying to grow.

Before extending credit:

→ Set a credit limit for each customer.

→ Agree on payment terms upfront.

→ Track overdue invoices and follow up early.

→ Review a customer's payment history before increasing their limit.

Remember, every shilling tied up in unpaid invoices is money you can't use elsewhere in your business.

A customer who buys on credit isn't necessarily a loyal customer.

Look beyond the size of the orders.

Look at payment behaviour, reliability and the strength of the relationship.

Because keeping a customer shouldn't mean putting your cash flow at risk.