There are several ways indebted customers that refused to pay off could be treated. What will would look at is the amount involved. That are some debts that could be written off as bad debt. There are some that would be resolved through litigation.
How do you deal with customer that refuse to pay back ?
- Thread starter Johnson2468
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Because of refusal to pay back, that is why I don't like giving out things on credit to people at all no matter how close you may be, this is business
Usually these small businesses are located in a neighborhood where people know each other. It's hard to refuse sometimes because you want to maintain the relationship. If they don't pay after reminding them forget about it and don't extend credit to her anymore.
Living in a neighborhood environment does not mean there couldn't be stubborn debtors. Infact, the environment promotes some petty debtors whom the owners of the businesses had overlooked but stopped to continue selling to them on credit again.
That's the best that a business owner can do. It happened to us several years ago. We don't care if they don't buy from us lol as we believe sooner or later they'll come back and buy again. Sometimes they have no choice at all but but from us rather than going to downtown to buy when it's readily available.
A business located in a neighborhood where people know each other are often characterized with customers not willing to pay back.
I agree with you my friend on that. That's why I am not willing to start a business in my home. Starting the business in your home may ditch the business into bad debts as siblings would like to buy in credit from your store and they never pay back.
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You should count that as the business bad debts and that you deceise from selling on credit to other customers no matter how sure that they can repay the debt.
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