How to Increase Your Vendor Credit Limit?
The credit limit can be in terms of the credit amount against goods/services or the number of days to pay it back.
The primary factor any vendor will check when you request to increase your credit limit is your past credit payment track record.
Whether you clear their dues on time or how many follow-up calls it takes to recover their money from you.
Most of the time, we are unaware of the due dates because we don't track them.
The system to improve your credit payment track record is,
1. Document your purchases in a spreadsheet or an accounting tool.
2. Assign dates, credit period, and due date for each entry.
3. Use a pivot table or analytics to keep track of the upcoming dues.
4. Make the respective payments as per the due dates.
When you follow this system, the vendor will receive their payments on time.
They will respect you for that because they are getting back their money on time and with less effort.
This adds to your reputation as a business owner, which leads to building financial trust.
Now that you have improved your credit payment track record, asking to increase your credit limit becomes easy.
When they increase your credit limit follow the same system and keep building your financial trust.
Did this resonate with you? Let me know in the comments.
