Credit Kills Small Business

Giving credit to a customer means that you are lending him/her money that comes from your stock. You will have less money to buy stock and less money means less stock, less sales, etc.

Beware of having accounts with your suppliers. Pay money owed immediately or as quickly as possible.

Remember that any discounts that you give impacts on your profit. So before giving discount, add the discount to the cost price, before you calculate the selling price!