How to handle chronic debtors In a business

[cherry123]

The truth is that in the course of a business you would be meet people that would refuse to pay up over time after buying on credit from you.How can one deal with this kind of situation to retrieve your money especially if you still want to keep a good relationship with the debtors

 

[Stardom22]

I think you can achieve this through implementing a debt collection strategy whereby you enter into an agreement with the debtors to pay their debts in as smaller installments as they can for their desired time frame so long as they clear their debts

 

[cherry123]

I think you can achieve this through implementing a debt collection strategy whereby you enter into an agreement with the debtors to pay their debts in as smaller installments as they can for their desired time frame so long as they clear their debts

This will be a very good idea if only the debtor will want to comply because they are some that finds it difficult to pay.

 

[Shavkat]

They can be banned or even file a formal case in court. so that they will stop these habitual traits. I am sure it would make them stop doing it.

 

[cherry123]

They can be banned or even file a formal case in court. so that they will stop these habitual traits. I am sure it would make them stop doing it.

I think this is how some of them will understand it that's it is wrong to owe and not ready to pay back.

 

[Bisolami]

The truth is that in the course of a business you would be meet people that would refuse to pay up over time after buying on credit from you.How can one deal with this kind of situation to retrieve your money especially if you still want to keep a good relationship with the debtors

The best way to handle chronic debtors is by trying every possible means not to sell in debt for them again and try to collect the they have with them

 

[Suba]

Currently, many marketplaces are implementing a paylater payment strategy, meaning that the buyer is in debt and payments are made in installments. But if by the due date the purchase has not been paid, then the debt collector will act to collect the debt at his home or office. Many debt collectors are big and rough, moreover the buyer (who is in debt) will be reported to the authorities (the government). and it will be blacklisted from any marketplace and bank.

 

[Bisolami]

Would you believe that if they report to government authorities here, they will pay some fees too. That's shy I don't like to include them in everything I do

 

[cherry123]

Would you believe that if they report to government authorities here, they will pay some fees too. That's shy I don't like to include them in everything I do

Are you referring to the sellers paying fees to the government too?

 

[Bisolami]

Are you referring to the sellers paying fees to the government too?

I mean if they report to the police, they will have to pay the police some amount of money to settle the matter

 

[uptrendfinancialsignal]

Selling goods on credit is not the best because it quickly cripple the business.

 

[Golden9]

Even if you sell on credit, there should be a limit especially for bad debtors and people who have no history with you. To collect money from bad debtors, you may need to get security agents involved.

 

[cherry123]

Even if you sell on credit, there should be a limit especially for bad debtors and people who have no history with you. To collect money from bad debtors, you may need to get security agents involved.

I think getting to know people credit history helps to avoid giving them big loans until one Is sure.

 

[Bisolami]

Selling goods on credit is not the best because it quickly cripple the business.

It will surely cripple the business because there are people that will not make their payments after you have sold your goods to them on credit

 

[cherry123]

It will surely cripple the business because there are people that will not make their payments after you have sold your goods to them on credit

And some people just purposely buy on credit so that they will not pay back

 

[Bisolami]

And some people just purposely buy on credit so that they will not pay back

That is wickedness. It is not nice to buy something on credit when you know that you won't pay the person who sold it to you back. Well, some people do it.

 

[Springtime]

The first step I would take is to discuss with the debtors how and when they can settle the outstanding payment. It could be by instalments or a date agreed by both sides. If this doesn't work, I would ask the company lawyer to issue a letter to ask for payment. The last resort is to formally file a case.

 

[hastral45]

The moment a customer is identified as a chronic debtor, the company should exercise patience in dealing with him. He should not be granted further credit facility anymore. He should be made to pay his indebtedness.

 

[Bisolami]

The moment a customer is identified as a chronic debtor, the company should exercise patience in dealing with him. He should not be granted further credit facility anymore. He should be made to pay his indebtedness.

There are some people that are still only my mummy some money till now but my mum has promised herself not to ever sell on credit to those set of people anymore

 

[flower]

Those kind of debtors could be a thorn in your flesh but you just have to handle things maturely.