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Processing Credit and Loan Sales

Learn how to handle credit sales, set up payment plans, and manage customer loan accounts.

Understanding Credit Sales​

Credit sales (also called loan sales) allow customers to:

  • Pay partially now and the rest later
  • Take products immediately while paying over time
  • Build a payment history with your business

When to Use Credit Sales​

Credit sales are ideal for:

  • Regular, trusted customers
  • Large purchases that customers can't pay fully upfront
  • Building long-term customer relationships
  • Increasing sales by offering payment flexibility

:::warning Credit Management Only extend credit to customers you trust. Always track due dates and follow up on payments promptly. :::

Processing a Loan Sale​

Follow these steps to create a credit sale:

Step 1: Add Items to Cart​

Same as cash sales:

  1. Browse or search for products
  2. Add variants to cart
  3. Review quantities and prices

Step 2: Open Sell Modal​

  1. Review cart total
  2. Tap "Sell" button
  3. Sell Modal opens

Step 3: Select Loan Payment Type​

In the Sell Modal:

  1. Choose "Loan" (instead of "Full Payment")
  2. The interface changes to show loan options

Step 4: Choose Customer​

Customer is required for loan sales.

Options:

  • Select an existing customer from dropdown
  • Tap "Add Customer" to create a new one

:::tip Customer Requirement Unlike cash sales, you cannot use "Walk-in" for credit sales. You need to track who owes the money. :::

Step 5: Set Initial Payment​

  1. Enter the amount customer is paying now
  2. Remaining amount is calculated automatically
  3. You can set initial payment to 0 if customer pays nothing upfront

Example:

  • Total sale: 1,000 ETB
  • Initial payment: 300 ETB
  • Remaining balance: 700 ETB

Step 6: Set Loan Due Date​

  1. Tap the date field
  2. Select when the full amount should be paid
  3. Consider your business terms:
    • 7 days (1 week)
    • 14 days (2 weeks)
    • 30 days (1 month)
    • Custom period

:::info Setting Due Dates Choose realistic due dates based on:

  • Customer's payment ability
  • Your cash flow needs
  • Industry standards
  • Relationship with customer :::

Step 7: Select Payment Method (for initial payment)​

  • Choose how the initial payment is being made
  • Options: Cash, Bank Transfer, Mobile Money, etc.
  • If initial payment is 0, you can skip this

Step 8: Complete Loan Sale​

  1. Review loan details:

    • Total amount: [Full sale value]
    • Initial payment: [Amount paid now]
    • Remaining: [Balance due]
    • Due date: [When payment is expected]

  2. Tap "Complete Sale"

🎉 Credit sale created! The customer can take the products now.

What Happens After a Loan Sale?​

  • ✅ Stock is reduced - Items leave inventory
  • ✅ Sale is recorded - Appears in sales history with CREDIT indicator
  • ✅ Customer account updated - Balance is added to customer's credit
  • ✅ Due date is tracked - System will alert when payment is overdue
  • ✅ Initial payment recorded - If any amount was paid upfront

Managing Customer Payments​

When a customer makes a payment on their loan:

Step 1: Find the Loan Sale​

  1. Go to Sales tab
  2. Filter by "Credit" to see loan sales
  3. Find the customer's sale
  4. Or search by customer name

Step 2: Open Purchase Details​

Tap on the credit sale to open the Purchase Detail page.

Step 3: Record Payment​

  1. Tap "Add Payment" floating button (green button)
  2. Payment dialog opens with fields:
    • Payment Method: How they're paying
    • Amount: How much they're paying
    • Description: Optional note about the payment

Step 4: Quick Amount Buttons​

Use quick buttons to enter common amounts:

  • 25% - Quarter of remaining balance
  • 50% - Half of remaining balance
  • 75% - Three-quarters of remaining balance
  • 100% - Full remaining balance

Or enter a custom amount.

Step 5: Save Payment​

  1. Review payment details
  2. Tap "Add Payment"
  3. Payment is recorded and balance updates

Viewing Payment History​

In the Purchase Detail page, see complete payment history:

  • All payments with dates
  • Payment methods used
  • Installment numbers (1st payment, 2nd payment, etc.)
  • Running balance after each payment
  • Who recorded each payment

Overdue Loan Management​

Identifying Overdue Loans​

In the Sales list:

  • Red indicators show overdue loans
  • Days overdue displayed clearly
  • Sort by due date to prioritize follow-ups

Following Up on Overdue Payments​

  1. Contact Customer:

    • Use phone number in customer profile
    • Send payment reminder
    • Discuss payment plan if needed

  2. Record Partial Payments:

    • Accept whatever amount customer can pay
    • Update balance in system
    • Set new due date for remainder

  3. Track Follow-ups:

    • Add notes in payment descriptions
    • Document communication attempts
    • Review payment trends

Credit Sales Best Practices​

Before Extending Credit:​

  • ✅ Verify customer identity and contact info
  • ✅ Check customer's payment history (if they've bought before)
  • ✅ Set clear terms and due dates
  • ✅ Explain interest/late fees if applicable
  • ✅ Get customer agreement on terms

During the Sale:​

  • ✅ Clearly communicate total amount and remaining balance
  • ✅ Set realistic due dates
  • ✅ Provide receipt or sale confirmation
  • ✅ Record all details accurately

After the Sale:​

  • ✅ Monitor due dates daily
  • ✅ Follow up promptly on overdue accounts
  • ✅ Send payment reminders before due date
  • ✅ Record all payments immediately
  • ✅ Thank customers for on-time payments

Credit Policy Recommendations​

Setting Credit Limits:​

  • New customers: Smaller amounts or require initial payment
  • Regular customers: Higher limits based on history
  • VIP customers: Flexible terms based on relationship

Payment Terms:​

  • Short-term (7-14 days): For most credit sales
  • Medium-term (30 days): For trusted customers
  • Long-term (60+ days): Only for special arrangements

Initial Payment Requirements:​

  • New customers: 30-50% initial payment
  • Regular customers: 20-30% or flexible
  • Trusted customers: Can start at 0%

Monitoring Credit Health​

Red Flags to Watch:​

  • ⚠️ Customer consistently pays late
  • ⚠️ Increasing number of overdue accounts
  • ⚠️ Large outstanding balances
  • ⚠️ Customers avoiding contact

Healthy Credit Indicators:​

  • ✅ On-time payments
  • ✅ Regular customers who pay reliably
  • ✅ Decreasing outstanding balances
  • ✅ Good communication with customers

Common Credit Sale Scenarios​

Scenario 1: Trusted Customer, No Initial Payment​

  • Total: 2,000 ETB
  • Initial: 0 ETB
  • Due: 30 days
  • Reason: Long-term customer with perfect payment history

Scenario 2: New Customer, Requires Deposit​

  • Total: 1,500 ETB
  • Initial: 500 ETB (33%)
  • Due: 14 days
  • Reason: First-time credit customer, reducing risk

Scenario 3: Large Purchase, Payment Plan​

  • Total: 5,000 ETB
  • Initial: 1,000 ETB (20%)
  • Due: 30 days for next payment
  • Plan: Customer will pay 1,000 ETB every 2 weeks

Troubleshooting Credit Sales​

"Customer field required" Error​

Solution: You must select a customer for credit sales. Add the customer first if they're not in the system.

Can't Record Payment​

Solution: Ensure payment amount doesn't exceed remaining balance.

Overdue Date Not Showing​

Solution: Due date must be set when creating the loan sale.

Next Steps​

Learn about managing sales records:

Or move to Phase 3 to understand your business performance:

Next: Managing Sales Records →