Customer credit tracking for shops

In most Egyptian shops there is a small notebook next to the drawer with the names of customers who took goods on credit. It works until it gets lost, names get mixed up, or someone forgets to write down a payment. Customer credit tracking for shops in software solves this: every credit sale goes on the customer's account automatically, every collection reduces the balance, and at any moment you know who owes what.

Problems with the paper notebook

• There is no clear balance; you add up the numbers by hand every time.
• A cashier may sell on credit to a customer who already owes a lot without knowing it.
• Small payments get forgotten, which leads to disputes with customers.
• You can't give a customer a tidy statement of their purchases and payments.
• If the notebook is lost, the debts are lost with it.

An account for each customer, with a clear balance

The basic idea is that every customer has an account. On a credit sale the cashier picks the customer, and the invoice amount, or the unpaid part of it, is added to their balance. Nobody types the balance by hand; it is the result of recorded invoices and collections. Because the invoice is linked to the account, you know exactly what the customer bought and when.

Register each customer once with a name and phone number, so names don't repeat and one customer isn't confused with another of the same name. If you have more than one branch, the customer has one account and their real balance shows in every branch.

A credit limit for each customer

Not all customers are the same. A long-standing customer who pays on time may get a larger amount, and a new customer a small one. Set a credit limit for each customer; if an invoice would go over it, the sale needs a manager to approve it with their own password, just for that one sale. That way a debt never grows without your decision.

Review limits from time to time. A customer who pays on time deserves a higher limit, and a customer who is often late may get a lower one, or no credit until they pay.

Collections and statements

When a customer pays part of their debt, record the collection on their account at that moment. When they ask «how much do I owe?», print a statement showing invoices, payments and the current balance. A tidy statement ends most disputes and encourages payment, because the customer sees clear numbers.

Watch customer balances as a whole too: how much do customers owe you in total? That is your shop's money outside the drawer. If it grows month after month while sales stay flat, credit is eating your cash, and you need tighter limits or more active collection.

Who is allowed to sell on credit?

Not every employee should sell on credit. Use permissions to decide who can, and who can record collections. Most important, these permissions should be enforced on the server, not just a hidden button on the screen. We explain the difference in real permissions for every employee.

Credit is not instalments

Selling on credit means the customer pays later, all at once or in payments as you agree. Instalments with a schedule and a due date for each payment are a different system. CARMA HUB offers credit sales with limits, collections and statements, and does not offer instalment schedules at this time.

If your business depends on fixed monthly instalments, know that before you choose. Most shops that sell to known customers who pay in parts are well served by credit with a clear limit and a statement.

Tips to reduce late debts

• Start a new customer on a small limit, and raise it as they pay regularly.
• Review customer balances every week, starting with the largest.
• Send the customer their statement before asking for payment.
• Record every payment right away, even a small one.
• Only allow credit for a customer registered with a name and phone number.

How CARMA HUB helps with credit

• Credit sales from the till on the customer's account, with a credit limit per customer.
• A balance per customer that is the result of recorded invoices and collections.
• Recording collections and printing customer statements.
• Per-employee permissions enforced on the server, and loyalty points for customers.

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