Credit book
Selling on credit is normal, and the notebook it usually lives in is where small businesses quietly lose money. The Credit Book tracks who owes you, how much, and how long it has been.
Bringing across an existing book
Already have a debt notebook? Import it in one go rather than typing each customer — Credit Book → Import credit book, or download the credit template. See Migrate to SBB.
How it works
When a customer takes goods without paying, record it against their customer record. Their balance rises. When they pay, record payment and it falls.
At any moment you can see the total owed to you, and by whom.
Credit limits
Edit credit limit sets a ceiling per customer.
Set it to a number you could genuinely afford to lose. Not what they ask for, not what feels rude to refuse — what you could absorb if they never paid again. Some proportion of credit extended will not come back; the limit decides how much that costs you.
The limit works at the point of sale, which is the only point it can. Once goods are gone you have no leverage left.
Collecting
Work oldest debt first. Collection rates fall steeply with age — a two-week-old debt is usually a forgotten one; a six-month-old debt is usually a decision.
Practical habits:
- Agree the payment date when the credit is given, not after
- Send a reminder before it is due, not only after
- Record every promise and every part-payment as it happens
- Stop extending new credit to someone already over their limit — this is exactly the moment it is hardest to do and most important
Credit book vs invoices
| Use | For |
|---|---|
| Credit book | Informal running tabs — the shop customer who pays weekly |
| Invoices | Formal terms, documents, due dates, payment links |
Businesses selling to other businesses should invoice. Retail with regulars is what the credit book is for.
Watch the concentration
If one customer is most of your credit book, their cash-flow problem is now yours. Look at the spread, not just the total — and model the late-payment case in your forecast.