Click to read the original text for details Foreword Is credit sales really useless? So, is credit sales really something to be feared? Actually, not necessarily. For buyers, the benefits of credit sales are obvious. First, purchasing products on credit can alleviate the pressure on buyers' cash flow. If a buyer is currently short on funds but urgently needs to purchase a batch of products or production materials, credit sales can solve their cash flow difficulties, preventing them from missing opportunities due to financial constraints. Second, credit sales give buyers time to discover product quality issues, allowing them to take the initiative in payment matters. If the product quality indeed has problems, buyers have the right to refuse or partially refuse payment, avoiding losses. Third, in a sense, buyers use credit sales to make money with others' money. They take the seller's goods on credit, sell them, and then pay, investing little or none of their own money, thereby reducing bank loans and lowering interest costs. Why not? Pros and cons of credit sales for sellers However, in contrast, credit sales seem somewhat forced for sellers. Any seller would naturally prefer cash transactions, i.e., cash on delivery, which is risk-free and allows for quick capital recovery. Yet, facing increasingly competitive markets, companies and distributors have to accept seemingly harsh conditions—credit sales. Actually, upon careful analysis, credit sales are not all disadvantages for sellers. Just as everything has two sides, credit sales also have advantages for sellers. First, credit sales can stimulate purchasing power. For buyers with temporary financial difficulties, credit sales are undoubtedly tempting. For example, current installment payments fully illustrate this point. Second, credit sales can enhance sellers' competitiveness. A company capable of offering credit sales is clearly more competitive in the market than one that cannot. If a company has strong financial backing, it can afford to offer credit to customers and withstand the burden on cash flow caused by credit sales. Third, credit sales can help stabilize customer relationships. Offering credit as a preferential condition to customers with good credit and strong strength provides a guarantee for maintaining long-term, stable customer relationships. Offering credit to old customers who know each other well but are temporarily short on funds helps them alleviate cash flow difficulties, deepening their "affection" for the supplier and making them more willing to cooperate in the future. Fourth, credit sales can reduce inventory for companies or distributors. Currently, many companies face severe product overstock, with large amounts of capital tied up and unable to be liquidated, significantly hindering their development. Some companies even face the risk of bankruptcy. Although credit sales cannot immediately recover capital, they at least make it possible. Lack of credit is the real culprit behind the scenes Actually, credit sales themselves are not the problem. So why are companies or distributors unwilling to offer credit? It's because they can't get their money back, and the fundamental reason for not getting money back is the lack of credit. If there is any dividend in China that has not been tapped, trust and mutual trust are the largest undeveloped wealth. Indeed, China's next biggest dividend in the future is the reconstruction of social credit relations. On one hand, China's credit market has not yet been established; on the other hand, people have lost trust in each other. We have put a lot of energy and cost into how to guard against each other. This directly leads to low operational efficiency in society, such as severe internal friction in teams and low cooperation among people. But driven by mobile internet, big data, and cloud computing, China's credit market is being established. Once the credit market is established, its significance lies not only in greatly improving the operational efficiency of the entire society but also in that people begin to abide by rules and believe in the spirit of contract. This is the first step in finding faith, and the wisdom of the Chinese people will have great use. For everyone in the future, credit will become extremely important. The future wealth route is: behavior—credit—personality—wealth. It can be summarized as: the best marketing is content, the best content is product, and the best product is credit. -END-