How to Increase Sales by Implementing Net Terms

Published On: March 16th, 2023Categories: Asset & Liability Reports, Business Credit Reports
Strategies for revenue growth | Bravo Recovery

Have you ever considered giving terms to your commercial customers? Net terms are another way to increase sales by offering credit to customers – and who isn’t looking for more sales… Here are a few examples of how implementing net terms to your company can boost sales.

  1. Encouraging larger purchases – Offering net terms allows customers to make larger purchases by spreading out payments over a longer period of time. This can help to increase the average sale amount.
  2. Building customer loyalty – By offering net terms and providing a positive experience during the credit granting process, you can build customer loyalty. Remember: Make a Friend, Make a Sale! Repeat customers are more likely to make additional purchases, and they may also refer friends and family to your business.
  3. Reducing friction in the sales process –  With net terms, customers do not have to worry about making a payment upfront. This can make the sales process more seamless and less stressful for customers, which can lead to more sales.
  4. Reaching new customers – Some customers may not have the financial means to make purchases upfront, but may be able to do so if they have access to net terms. By offering net terms, you may be able to reach new customers who would otherwise not be able to make a purchase from your business.
  5. Generating recurring revenue – If you offer net terms that allow customers to make payments over time, you can generate recurring revenue. This can be especially beneficial for businesses that offer products or services that require ongoing maintenance or updates.
  6. Increasing competitiveness – Offering net terms can help you to compete with other businesses that offer similar products or services. If your competitors are offering net terms, you may lose out on sales if you do not offer them as well.

These are just a few examples of how implementing net terms can help to increase sales for your business. It’s important to have a clear policy in place for net terms and to manage credit risk effectively to ensure that your business is protected. Have a commercial credit and collection agency on your side to handle the business credit reporting and any defaults you may encounter.

Bravo Recovery can assist with any credit and collection needs your company may have. We’d love to chat with you!