Learn how to reduce your store's default rate

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Are you suffering from high default rates in your business? Would you like to find out how to reduce default rates in your store? If you answered yes, you're in the right place!

It's scary, but 99% of stores don't know how to create a proper default report . Considering that default makes a huge difference in the cash flow of any business, it's essential that we try to change this reality by learning about it.

Therefore, if you want to grow your store in 2022, focusing on rcs database security and reducing defaults in your credit operation, you need to check out this complete article now.

Continue here and once and for all have a good basis for understanding the subject.

Happy reading!

HOW TO CONTROL DEFAULT RATES IN CREDIT?
First of all, there are some first steps that I consider to be simply essential to avoid default rates in a business as much as possible. So, following these tips is the first step:

Always consult credit protection agencies ;
Go beyond the consultation and invest in credit analysis;
Show the customer that you remember them;
Be careful not to make abusive charges;
Treat the collections sector with great care;
Invest in a credit management system.
Understanding all these points is, without a doubt, the first step towards getting rid of the problem of defaulting on payments. Therefore, following these 6 steps can change the revenue from your credit transaction.

Check out our new video and see how to reduce your store's default rate
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AND IN PRACTICE, HOW CAN I REDUCE MY STORE'S DEFAULTS?
Many stores, when they implement a credit engine to help grant credit, end up having some concerns because the monitoring of defaults is not decreasing. In this sense, I want to teach you how to predict the situation:

To begin with, what is the first mistake that stores make? I can say with certainty that it is the way these store owners read the default report or even the type of report that the company has access to. And this assessment is a very essential point.

The Importance of Proper Credit Analysis
Imagine that we have a chain of stores where the default rate is reaching 20% ​​and the store is looking for a credit engine to reduce this default, but it does not want to sacrifice sales. To this end, there is a study on how this can be done. So, when the store checks the report by due date, this rate ends up taking a long time to decrease. Based on this, the store owner ends up becoming desperate with this operation, because he begins to realize that the credit engine “is not working”. But is this true? No, he is just looking at it wrong.

The truth is that the retailer is looking at a report that includes all sales that have already been made on credit, including sales that did not go through the credit engine . Therefore, if this retailer looks at all the indexes in general, it is clear that past defaults will affect current results. However, to know if the credit engine works, it is necessary for him to evaluate the results from the moment it was implemented.

How to monitor default rates
When you can better distribute default data and analyze the before and after, you can understand which actions are most effective. To do this, it is important to evaluate the default rate by the date of sale. This way, you can identify the sales made after the implementation of the credit engine and the results.

In conclusion, this is the ideal way to monitor sales defaults. In addition to looking at the month-to-month trend, it is possible to identify what happens after the change in credit policy and what exactly this change caused in the default rates.

Based on this and with the help of Meu C rediário , it is possible for your company to reach a default rate of around 5%, which is what every entrepreneur wants most.

These processes tend to help retailers a lot during the next year, also guaranteeing more opportunities for those who want to sell through their own credit model.

REMEMBER: whoever manages to do this type of monitoring will certainly come out ahead and will increase (a lot) the revenue of their own business.