An Entry About Corporate Debt..

Geez! Another boring entry... I am sorry!!! But i can't help it. Having a recent, good "silence mode" really push my ideas into galaxies and beyond.

** silence mode is when I churned my experience, digesting my all theories and learnings. Assimilating it in mind. Often happen after several readings, or after big events that lead into it.


One book I have read recently is about corporate debt collection. From the book; they say that 1/3 of people pay because its the right thing to do. The next 1/3 pays only if they know that somebody is watching them. The other 1/3 pays because if they know that they will end up in lots of trouble by not paying. Hell, I don't know where the figure where people don't even bother of paying, or purposely don't care a shit about paying their debt.

However, the book advises;

1. Not to take good paymaster for granted.

Rewarding good behavior is the key. Therefore, a mutual win-win situation is created and kept for life.

2. Provide a clear and prompt billing process.

Often SMEs enterprises are not good at this, whilst others are juggling with this matter. Due to constraints (management, trainings and financial isues normally), many are destroyed by slow, misunderstanding and inaccurate billing process. Inaccuracy and confusing bills and statements will only hinder or creating delayed payments. In other words, QUALITY SERVICES!. Often, good customers turn into bad due to a bad billing error, or product dispute.
Avoid chain reactions that will hurt your organisation. Resolve any disputes quickly. Never ruin the relationship that your business partners are having with you.

3. Make it easy to pay.

How many of us grunted for a bad service? Same applies to your organization. Providing multiple payment options, or providing an easy access for payments will enable customers to be loyal, and creating more good paymasters.



Notably, many retailers are enjoying good cash flow as there are; only one payment terms = pay and leave, and multiple payment method = cash or credit card.