Company debts are a norm in businesses and as small business owners, we all know a healthy cash flow is vital to a business.
Although the stressful period of retrieving my bad debt is over, I still have many customers that cannot pay up in full or delay the payment by 1 month or so.
One in particular was unable to pay us the large amount that accumulated over 2009 Christmas sales.
After understanding their situation and the business owner's sincerity, we worked out a payment deal in which we would collect a fixed amount of money weekly so that our cash flow can improve and it will not be so taxing for our customers to pay us a one big lump sum of money.
5 months have since gone by and I'm happy to say that 70% of the debt is cleared.
We have been supplying goods to this customer the whole time throughout and they try their best to pay us, albeit having 1 or 2 weeks delay sometimes.
This arrangement has helped both of us to continue working together without much unpleasantness and more importantly, to serve our customers and grow together.
I guess different situations call for different debt collecting tactics. ;)
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