How do you know which option is better between forward and spot sales?

After knowing the advantages and disadvantages of the two forms of payment, it is possible to understand how complex it is to choose one or the other. However, the choice is made easier by keeping in mind the best experience for the consumer and better conditions for the company for spot sales.

For this, it is worth considering some factors. Look!

The company’s market  for spot sales

To conclude whether installment or cash sales are more advantageous for the company, you need to know your business segment. It is essential to make an analysis of external factors to know whether this choice will not alienate customers.

This analysis should include an understanding of the solutions offered by the competition. After all, you can be exchanged for it if you don’t choose the payment method that is most in line with the market. Thus, your business could experience difficulties and not be able to maintain itself.

Profile of the public served

Is your target audience more financially organized or do you have difficulties in this regard? What economy class does it fit in? What means of payment do you prefer?

Answering these questions helps you understand which option is most viable for your business, according to the customer’s profile. For example, the financially organized public tends to opt for installment payments. On the other hand, those who have less money cannot always pay in cash.

There are also preferences related to the operating segment. In retail, for example, offering the option of payment in installments and in cash is fundamental.

Types of products or services offered

Small-value and retail-bought items typically align more with cash payments. However, if the products or services offered in your business require greater purchasing power, it is possible that payment in installments will be more beneficial.

fees charged

It is also valid to consider the fees charged in the forms of payment. An example of this is the fees required by credit and debit card companies. Therefore, it is important to do a value analysis to understand which option offers the best cost-benefit.

The environment where sales are made

When it comes to online sales, it is often common for customers to opt for the option to purchase in installments, either in one installment or in installments. This method tends to be more comfortable and secure for payment.

On the other hand, this is not always the case with physical stores — especially those that sell cheaper items. In this case, the public’s preference at times may be for cash payment. So take that aspect into consideration.

Deadlines for payment methods

The deadline for receipt of payment varies depending on the chosen method. Thus, you must consider the reality of your company to understand the most appropriate term within your cash flow.

Once that’s done, make sure the terms of the payment option you choose to align with your business’s cash flow. That is, he must be able to maintain himself until the stipulated deadlines for receiving the money.

How does prepayment help when selling on credit for spot sales?

As you have noticed, the deadline for receiving installment payments can make it difficult for a company to manage its finances. But, as this payment method is often popular, excluding it from your business is usually not the best decision.

Therefore, the right decision may be to reconcile the two forms of payment. And, if you are afraid of difficulties in relation to the company’s cash, you can count on solutions that anticipate purchases in installments.

The anticipation is possible with the advance of receivables. In this way, you have a company to expedite the receipt of money for future commitments. This allows the replacement of stock, acquisition of raw materials, and other investments with practicality.

By anticipating receivables you will not be indebted or paying interest. The operation is made with your future receipts, including a discount as a fee. That way, you know what the cost will be honest and transparent.