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Credit is really a cash-flow decision in disguise. Money owed to you cannot buy stock, pay rent or settle a supplier, so generosity has a real cost.
Used with limits and good records, credit builds loyalty among customers worth keeping. Used loosely, it drains the working capital a small shop runs on. The difference is discipline, not goodwill.
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Related questions
How much credit is safe to give?
Only what you can afford to wait for without it stopping you restocking or paying bills. Set a per-customer limit and hold to it.
Who should I avoid giving credit to?
Anyone whose repayment you are unsure of. Credit is for proven regulars, not one-off or uncertain customers.
Veira gives Kenyan shops one calm app for selling, M-Pesa, KRA eTIMS and stock, with a free terminal. Book a demo and see it set up for your trade.