Credit sales
How to sell goods on credit in Nigeria
A customer wants stock today and promises to pay in two weeks. Before you agree, settle two questions: can your business wait for the money, and does the customer understand exactly what they will owe?
Work out what leaves your pocket
Suppose 40 cartons cost you ₦400,000 and you sell them for ₦480,000. The sale has an ₦80,000 difference before your other costs. But until the customer pays, the ₦400,000 you spent on stock is still tied up. A profitable invoice does not put money in your bank account.
Check the bills and replacement stock you must pay for before the proposed due date. If a delay would leave you unable to meet those commitments, discuss a deposit, a smaller order or payment on delivery. Do that before accepting the order.
Put the actual deal in writing
“Forty cartons, pay in two weeks” leaves too much open. Record the brand, pack size, unit price, total, recipient and delivery address. Replace “two weeks” with a calendar date. State any agreed payment schedule and any disclosed charges separately.
The person who accepts the terms may not be the person who takes delivery. Identify both. Send the completed terms to the customer and resolve mistakes before the goods leave.
Keep delivery and payment separate
A signed delivery note answers whether the customer received the goods. It does not show that they paid. A payment receipt answers how much you received. Keep both against the same sale reference.
If the customer reports a transfer, check your own account before recording it as received. For the example above, a confirmed ₦180,000 payment leaves ₦300,000 of the ₦480,000 sale price outstanding. Do not reduce that balance again when a colleague later forwards the same bank alert.
Before you release the order
In Kredit, the sale brings the terms, acceptance, delivery record and payments together. Customer acceptance and delivery confirmation are separate steps; one should not be used as evidence of the other.
- The customer has checked the goods and total.
- Both sides have the same due date and any instalment dates.
- You know who can receive the delivery.
- Your business can meet its own commitments while waiting.
- The accepted terms have been saved with the sale reference.
Questions people ask
Frequently asked questions
Does trust remove the need for an agreement?
No. A written record helps a regular customer and your staff remember the same amount and date. Keep the conversation proportionate to the order.
What if the customer changes the order?
Revise the draft before acceptance. If terms have already been accepted, use an agreed amendment and retain the earlier record.