Credit X Inflation

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Credit and inflation: do you know how to make this account balance at the end of the month? Find out now.

When we are talking about the retail market, inflation has a very strong impact. This is especially true when we are talking about footwear and clothing sales, as these are purchases that do not necessarily represent people's needs.

Of course, there are exceptions, but many times when consumers buy in this way, they are impulse purchases. When inflation is high, this affects the decision. Therefore, this type of segment tends to be directly affected at this stage.

The good news is that credit has direct ways of dealing with inflation and helping retailers get through periods like these, which are considered crises, in the best way possible.

Want to know more about this? Get your notes ready and check out this reading to find out more!

IS CREDIT THE SOLUTION TO AVOID HIGH INTEREST RATES?
Inflation is considered a true enemy of Brazilians' finances. But the good news is that credit can be a good ally to avoid very high interest rates. Digital credit has become an international trend with “buy now, pay later”, a payment method that guarantees greater purchasing power for people in more difficult times.

Digital credit is easy to use and can be offered directly during store checkout, at the payment stage, regardless of the sales channel. In other words, it is a convenience for people who need to buy but have lost purchasing power.

CREDIT LOANS X INFLATION: HOW TO GET AROUND THESE SITUATIONS?
One of the great benefits of credit when dealing with inflation is the 99 acres database opportunity to extend the payment option for a consumer who is having difficulty paying in cash. In addition, the fact that the retailer can grant the ideal credit to their customers helps to avoid defaulting on their payments .

For this reason, it is interesting to use credit as an incentive for people to continue consuming at your establishment, but when we talk about this aspect of making installments, it is essential to keep in mind that inflation can impact payment. So, do you want to know how to deal with this in the best way without affecting your cash flow?

To do this, it is important to remain alert to understand when the risk of the credit transaction is increasing. In this case, is it best to reduce the limit or increase the installment plan?

Reduce the credit limit or increase the installment plan?
There are two points that must be taken into account during a credit transaction: the limit and the term. The main focus should be to reduce the risk of default in a credit transaction, whether in an inflationary or economic crisis, with a focus on reducing consumption.

What we need to keep in mind is that the more you extend the term, the more you are unaware of the future. In short, there are countless situations that can lead to payment difficulties. If I extend the term, therefore, I expose myself to greater risk.

In the case of the limit, is reduction really the solution? One tip is to evaluate these points as connected and understand how much they are interconnected with the risk of the operation.

To deal with this in the best way possible, my suggestion is neither to increase nor reduce the limit, nor to reduce or increase the deadlines. This creates even more confusion and difficulty regarding payments. To have a healthy operation during times of crisis, it is necessary to take the risk into account.

Who to sell to in times of crisis?
In times of inflation, what you need to do is choose who buys from your store better. To do this, always check the risk profile of your customers and, based on this profile, understand what credit limit you have for your customers.

This way, you can prioritize good payers. And, in a possible inflationary situation, you can opt for risk profiles that will need to have their limits reduced or even have their credit cut. This will happen with customers with risk profile E, for example. As for customers with profiles A to C, you can maintain the limits and installments.

For this reason, the great benefit of credit is the possibility of carrying out an analysis, checking all customers and understanding who are the best payers. Adjust your operations, study and understand what is best for your cash flow. It is possible to maintain healthy operations taking into account this way of overcoming periods of crisis and inflation.

On our YouTube channel, we have released a special video with tips that will help you understand the relationship between credit and inflation. Check it out by clicking below!
YouTube video
Did you enjoy learning more about this? Contact our team of experts and find out how Meu Crediário can transform your business.

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