How to track pending payments and customer credit
By Loomton · Updated
Selling on credit keeps regular customers happy, and forgetting who owes what quietly eats the profit. The cure is not to stop giving credit. It is to always know the number.
Write every payment against its bill
An advance, a part payment and the final payment each belong to a particular bill. Record the amount, the date and how it was paid (cash, UPI, card) against that bill, so the balance is never a guess.
Know the total for each customer
A customer may have three bills open: a stitching order, a fabric purchase and last month's balance. What you need at the counter is one figure: what this customer owes in all.
Look at the oldest balances first
Money owed for a week is normal. Money owed for three months is at risk. Once a week, look at your pending payments from oldest to newest and decide whom to remind.
Ask at the right moment
- When the customer collects a garment: the easiest time to settle the balance.
- When they place a new order: clear the old balance before adding to it.
- With a polite message that states the bill number and the amount, so there is nothing to argue about.
Give the customer the same record you keep
A printed or shared bill that shows the total, what has been paid and what is left avoids most disagreements. Both of you are reading the same numbers.
