Credit Score for Furniture: Understand How It Works!

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Have you ever stopped to think that selling furniture should be thought of in a completely different way than selling other products? This article is aimed at professionals who work in the furniture market and would like to know how to best calculate the credit score for their customers.

I'll be blunt: I would say that 99.9% of furniture and teacher database appliance retailers don't know that the furniture score should be different from the score for other segments. And that's exactly why it's important to understand the best way to negotiate this score to ensure your financial security and also the best sales possibilities.

You, owner or manager of one or more furniture stores, need to understand the advantages of this calculation and also take advantage of the credit opportunities.

Want to understand more about this topic? Follow me here and check out this complete article I wrote to help you!

What is a Credit Score?
The credit score was a model we developed for Meu Crediário to classify the customer's risk, which has a direct relationship with the credit limit. Here, we work with five risk profiles: A, B, C, D and E.

Customer A is the one with a good relationship and a higher credit limit, while customer with profile E is the one with the lowest limit. In other words, the amount of the limit committed to each sale increases as the customer's risk profile increases.

Click here to understand even more about what a credit score is.

Furniture Credit Score: What Changes?
When we refer to the footwear and clothing department, for example, we are talking about a lower average ticket . That is, these are lower value sales, which could vary between R$150 and R$200.

However, when we are working with the furniture segment, this scenario can change a lot.

The furniture market ticket is much higher and can start at R$600 and go up to R$1200. In other words, we notice a very large variation in this case, don't we? But what is important to understand about this?

A simple but fundamental reason: the credit granting model could change completely.

Let's see: those who have one or more furniture stores usually have their own credit, but sometimes they seek the support of financial institutions to ensure the security of this operation. These financial institutions offer advance or financing of the sale on credit to the store.

This becomes necessary when the store knows that its capital can handle a credit transaction up to an amount of “X” and if in a given month these sales exceed this amount, support is needed. In these cases, sales are forwarded to the financial institutions.

Having understood this first point, we move on to the second: it is necessary to look at and understand the financing as a whole and why your client may need a larger number of installments. To make this choice or not, you can check the relationship of this client with the credit limit .