Extending credit

Dave Putits, a Cornwell Tools dealer, told the shops he visited that he would offer flexible payment terms. He found success offering customers 10-week payment terms. For toolboxes, he offers customers 7 percent minimum interest for two years if he deems them creditworthy.

"You can always turn something into a positive sales opportunity if you look at it from a different angle," he notes.

In determining who to give credit to, Putits considers whether or not they would make a down payment on the purchase. He also looks at the person's payment history. He pays attention to whether or not they have a credit card or own their own home. People who have credit cards and own homes tend to be more responsible, he has found. 

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