Is Guaranteed Credit the ideal model for your store?

[jisansorkar8990]

Have you heard about the Guaranteed Credit model? Have you ever stopped to think if this is the most interesting strategy to adopt in your store? And do you know which is the best credit model to adopt in your business?

I decided to write this text to help you better understand these sales strategies . After all, my goal is for you to get the best out of working with credit. I believe it is important to have this knowledge, because there is currently more than one type of credit model and it is essential to understand which one best fits each business.

Want to learn more about this topic and improve your credit lawyer database sales once and for all? I’ve prepared a complete article to help you finally understand all types of credit. Keep reading and I’ll be happy to explain it to you!

Own Credit and Guaranteed Credit: Understand the differences!
Here at Meu Crediário, we work with more than one credit option. Among them, we can list the Own Credit and the Guaranteed Credit. Learn more about them here:

Own Credit:
The main feature of the Own Credit is that the retailer uses the store's own resources to finance their consumers' purchases. As we said before, this is an interesting model for small and medium-sized retailers who can manage all the stages of the credit system easily in the store itself.

Among the advantages, an excellent one is that your customer returns to your store every month to pay the installment and, if they are late with an installment, the interest and fine will only go to your cash register . Therefore, in this case, a small delay in payment does not hurt. In fact, this is the key to the profitability of the Credit Card model.

Therefore, as long as you have control over the risks involved in this operation, it is possible to control defaults to minimize losses from defaults. A good option!

Click here and understand in more depth what a Personal Credit is.

Guaranteed Credit:
Guaranteed Credit is a service that relies on the assistance of a financial institution to take care of this part of the business. In other words, this management is not done by the retailer himself, but by a specialized company.

With Guaranteed Credit, you are 100% subject to the rules of the financial institution, which has complete autonomy to deny credit or establish the limit that it deems best for that client. But when can this option be considered the best for you?

When is Guaranteed Credit considered the best option?
Generally speaking, when a customer has a turnover of more than 10k and up to 500k, they probably already have more than one store. Therefore, the credit operation requires managers, credit agents, a collection center, among others .

This ends up generating large expenses for your stores, in addition to requiring a lot of work. Taking all these issues into account and also the fact that you are working with a much higher volume of money, it is worth having a Guaranteed Credit Plan, because the administration is done by another company with more security and the rates start to become lower. And the good news is that this guarantees an even better experience for the customer in your stores.

With Guaranteed Credit, we study the store's portfolio and identify which customers may have a good limit, in addition to studying how defaults can be balanced across all stores, and even the technology used here is much better.