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How to manage customer debts in a shop
Published 2026-11-01
Credit can help maintain customer relationships, but an informal tab is easy to forget or dispute. A consistent policy makes the balance clear to both the shop and the customer.
Set the rules before extending credit
Decide who may buy on credit, the maximum balance, when payment is due and who can approve an exception. Explain the terms before the first credit sale.
Keep customer details accurate and avoid sharing debt information with people who do not need it. A customer record should support the transaction, not become a public list.
Record sales and payments promptly
Each credit sale should identify the customer, date, items and amount. Record repayments against that customer's balance and give a receipt or statement that explains what remains owed.
Review overdue balances by age, then follow up in a consistent and respectful way. Confirm a disputed payment against till or bank records before asking the customer to pay again.
Use limits and reconciliation together
A credit limit can reduce exposure, but it does not replace checking balances or contacting customers. Pause further credit when an account reaches its limit until a payment or owner-approved exception is recorded.
Allocate repayments clearly and keep a history of changes. When the books and the customer's understanding differ, use the transaction history to resolve the issue.
Checklist
- Agree credit terms and limits
- Attach every credit sale to the right customer
- Record repayments as they arrive
- Review balances by ageing
- Send private, respectful reminders and resolve disputes
For more detail, see BlueDuka customer debt tracking · M-Pesa repayments · Statements and reminders guide.