Money Management – How Does My Avon Credit Limit Work?

 

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Based on the information entered when signing up to become an Avon representative, some people are granted a credit limit with Avon. The credit limit is typically $100 to begin with, and may be increased after several campaigns of on-time payment history.

This is how Avon determines whether someone qualifies for a credit limit:

Avon partners with an outside agency to validate your identity through public records. This is the first step in determining whether we may be able to offer you a line of credit. If we’re able to sufficiently validate your identity, you will be assigned a Campaign Credit Limit. If we cannot, you will not be given a line of credit and all orders will need to be paid for in full at time of ordering.

If a representative is not initially granted a credit limit, they may qualify after 3 months (6 campaigns) with Avon, following an automatic review of their account status at that point.

Here’s how the credit limit works, according to Avon:

This limit allows you to order products in the current campaign with payment not due until the next campaign, up to the amount of your Campaign Credit Limit. Representatives assigned a Campaign Credit Limit when they first join will see their limit automatically increase as they become established.

What exactly does that mean in practice?

What this means is that when a representative submits their order, Avon will temporarily delay payment, up to the credit limit, on the order. Avon will process and ship the order. The representative then has two weeks (up to the next scheduled order date) to pay the remaining balance on the order.

If the billed amount of the order is higher than the credit limit, Avon will delay a portion of the payment (up to the credit limit) until the next campaign, and ask for the remaining portion to be paid upfront, before the order will be processed and shipped.

Let’s look at two examples:

Example #1

A new representative has $100 credit limit.

They collect $120 in orders in the 1st campaign.

Through Avon’s Kickstart program, the new rep gets 40% earnings on their 1st order.

Avon discounts the $120 worth of items by 40% and bills the new rep $72 (plus tax and shipping) for the order. (The remaining $48 is the new rep’s earnings.)

Because the final bill is less than $100 (the new rep’s credit limit), Avon processes and sends the order right away.

The payment on the order is due in two weeks, by the next order date.

Example #2

A new representative has $100 credit limit.

They collect $200 in orders in the 1st campaign.

Through Avon’s Kickstart program, the new rep gets 40% earnings on their 1st order.

Avon discounts the $200 worth of items by 40% and bills the new rep $120 (plus tax and shipping) for the order. (The remaining $80 is the new rep’s earnings.)

Because the final bill is $20 greater than $100 (the new rep’s credit limit), Avon will request a payment of $20 before they will process and ship the order.

If the payment is not made right away, the order will go on hold until the payment is made. Avon will send an email notifying the representative that their order is on hold.

The remaining balance on the order is due in two weeks, by the next order date.

 

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Tips for Managing Your Avon Account:

TIP #1 – Regardless of whether you have a credit limit or not, many representatives prefer to collect payment from customers at the time they give their order. Why is this a good practice?

  • It ensures that you always have the necessary funds to pay any portion due to Avon when you submit your order.
  • It prevents you from getting stuck holding onto items while waiting for a customer to pay.
  • It simplifies the delivery process, since the bill has already been handled.
  • It puts your earnings in your hands instantly. Pay your bill with Avon, and then the rest is yours to keep!

TIP #2 – Review the order confirmation screen (which you’ll see right after submitting the order) carefully. That screen will provide you with the estimated amount due immediately. Pay that amount right away, so that your order will process quickly.

TIP #3 – Check your email after submitting your order to Avon. You should get a confirmation email right away, confirming that your order has received. A few hours later (or the next morning if submitting in the evening) you should receive an email saying that your order has billed. That email will let you know if your order is on its way or if a payment is required.

TIP #4 – Pay any remaining balance by your next scheduled order date, even if you are not submitting an order the following campaign. Past due fees will be added to balances not paid on time. You can view your balance owed, after the order has processed, by going to the My Account tab on youravon.com, and clicking Account Summary.

 

What should you do if you DON’T currently have a credit limit with Avon?

  • Keep your account in good standing, so that you may qualify at a later date.
  • See Tip #1 above. Regardless of whether or not you have credit, collecting payment from customers upfront is a good practice. Customers will not mind paying upfront, since it is normal practice to pay for items at the point they are ordered, whether it’s online, through another direct sales consultant, or through a door-to-door sales person (including kids taking orders for cookies and fundraising items).
  • If you choose not to collect payment upfront (It’s your business, so you can choose how you manage it) you can cover the Avon bill yourself, using a credit or debit card, then pay yourself back (plus profits) once you collect payment from customers.
  • If you encounter customers who are uncomfortable paying you directly upfront, provide them with your Avon e-store. They can place their order online, pay Avon directly, and have their order shipped to them from Avon (FREE shipping on orders of $40 or more)!! The orders come beautifully packaged with Avon logo tissue paper. They can even request a free brochure with their order!
  • Most importantly, don’t let it limit your business success. Your credit limit (or lack of credit limit) does NOT determine how much or how little you can sell. You are the boss of your Avon business. Think like a CEO and make the beautiful business thrive!
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