How much does the credit operation cost in your store?
Posted: Thu Jan 23, 2025 8:28 am
In today's article I want to talk to you about the cost of credit operations, focusing mainly on the Credit Granting part. Do you know how to do this calculation?
When working in retail, we know that there are a number of costs that need student database to be calculated in order to fully understand the revenue at the end of the month. Furthermore, although we know that checking credit limits and finding the ideal installment plan for customers is a challenging part of the job, I realize that understanding the cost of credit operations is one of the biggest challenges for business owners.
For this reason, today I want to invite you to study and understand how these calculations work. What do you think of this idea? Continue here and understand the topic completely.
Granting credit and its benefits
Credit Granting is a type of procedure in which the release of credit to a person is analyzed. This release can occur through financing, a loan, and is also used for installment payments. In order for a customer to obtain the desired credit, some factors are taken into account, such as the risk of default and the amount requested.
This is considered a fundamental part of the economy's development, as it increases the consumption capacity of a portion of the population that would otherwise have no other way of acquiring goods. However, it generates costs for the entrepreneur and these costs must be carefully assessed. And, to do so, it is essential to understand the costs of granting credit in store operations. To learn more about this, continue reading.
What is the cost of your credit transaction?
A major challenge for retailers is learning how to deal with customer defaults. After all, this is an important issue that can make a difference in revenue at the end of the month. To achieve this, calculating credit concession is essential and must take these costs into account:
New customers;
Traditional customers;
Average default;
SPC cost or My Credit investment ;
Credit salary.
Store credit operation in practice
What many people don't realize, however, is that when comparing the SPC COST and the INVESTMENT IN MY CREDIT CREDIT, it is possible to make huge savings at the end of the month.
To have all these values, it is important to organize and understand the expenses in each topic mentioned above. From this, it is possible to see the difference that Meu Crediário can make in helping to reduce default rates as much as possible.
To visualize this, let's use as an example a client with an average revenue of R$300,000.00 and an average ticket of R$220.00. Understand more about this in the table below:
No Credit Engine Default: Loss:
New customers (15%) 19% R$ 8,550.00
Traditional Customers (85%) 9% R$ 22,550.00
Average Default 10.50% R$ 31,500.00
SPC cost (30%) R$ 1,063.64
Credit Agent Salary (R$ 3,000) 1 R$ 3,000.00
Grand total
With Credit Engine Default: Loss:
New Customers (15%) 8% R$ 3,600.00
Traditional Customers (85%) 3.50% R$ 8,925.00
Average Default 4.18% R$ 12,525.00
Investment My Credit R$ 4,350.00
Credit Agent Salary (R$ 3,000) 1 R$ 3,000.00
Grand total 6.63% R$ 19,875.00
It is precisely when I invite my clients to put these calculations on paper that they finally understand the cost of granting credit with and without Meu Crediário. When we compare the two tables, we conclude that with Meu Crediário, clients have had a real reduction in total cost at the end of the month of 45.04% by using our system to reduce default . The difference is really huge.
You can check out other calculation examples and understand the costs of credit in store operations. See other detailed calculation examples in the video:
YouTube video
In addition to all the differences I mentioned, there are several other costs that can make a big difference at the end of the month with our help. Among them, we can mention: credit and collection team, SMS, calls, registrations/negative listings, third-party collections, quality products outside the store and even more.
Helping you with your debt is our part. And together with you, we can find strategies to increase your sales . This is our union and our mission!
When working in retail, we know that there are a number of costs that need student database to be calculated in order to fully understand the revenue at the end of the month. Furthermore, although we know that checking credit limits and finding the ideal installment plan for customers is a challenging part of the job, I realize that understanding the cost of credit operations is one of the biggest challenges for business owners.
For this reason, today I want to invite you to study and understand how these calculations work. What do you think of this idea? Continue here and understand the topic completely.
Granting credit and its benefits
Credit Granting is a type of procedure in which the release of credit to a person is analyzed. This release can occur through financing, a loan, and is also used for installment payments. In order for a customer to obtain the desired credit, some factors are taken into account, such as the risk of default and the amount requested.
This is considered a fundamental part of the economy's development, as it increases the consumption capacity of a portion of the population that would otherwise have no other way of acquiring goods. However, it generates costs for the entrepreneur and these costs must be carefully assessed. And, to do so, it is essential to understand the costs of granting credit in store operations. To learn more about this, continue reading.
What is the cost of your credit transaction?
A major challenge for retailers is learning how to deal with customer defaults. After all, this is an important issue that can make a difference in revenue at the end of the month. To achieve this, calculating credit concession is essential and must take these costs into account:
New customers;
Traditional customers;
Average default;
SPC cost or My Credit investment ;
Credit salary.
Store credit operation in practice
What many people don't realize, however, is that when comparing the SPC COST and the INVESTMENT IN MY CREDIT CREDIT, it is possible to make huge savings at the end of the month.
To have all these values, it is important to organize and understand the expenses in each topic mentioned above. From this, it is possible to see the difference that Meu Crediário can make in helping to reduce default rates as much as possible.
To visualize this, let's use as an example a client with an average revenue of R$300,000.00 and an average ticket of R$220.00. Understand more about this in the table below:
No Credit Engine Default: Loss:
New customers (15%) 19% R$ 8,550.00
Traditional Customers (85%) 9% R$ 22,550.00
Average Default 10.50% R$ 31,500.00
SPC cost (30%) R$ 1,063.64
Credit Agent Salary (R$ 3,000) 1 R$ 3,000.00
Grand total
With Credit Engine Default: Loss:
New Customers (15%) 8% R$ 3,600.00
Traditional Customers (85%) 3.50% R$ 8,925.00
Average Default 4.18% R$ 12,525.00
Investment My Credit R$ 4,350.00
Credit Agent Salary (R$ 3,000) 1 R$ 3,000.00
Grand total 6.63% R$ 19,875.00
It is precisely when I invite my clients to put these calculations on paper that they finally understand the cost of granting credit with and without Meu Crediário. When we compare the two tables, we conclude that with Meu Crediário, clients have had a real reduction in total cost at the end of the month of 45.04% by using our system to reduce default . The difference is really huge.
You can check out other calculation examples and understand the costs of credit in store operations. See other detailed calculation examples in the video:
YouTube video
In addition to all the differences I mentioned, there are several other costs that can make a big difference at the end of the month with our help. Among them, we can mention: credit and collection team, SMS, calls, registrations/negative listings, third-party collections, quality products outside the store and even more.
Helping you with your debt is our part. And together with you, we can find strategies to increase your sales . This is our union and our mission!