Encomium
Credit grows business. It can also at the same time kill a business if not properly managed.
From the experience of some of these entrepreneurs, we sought their views, it has been a win-lose situation…
BANKE ADEWUNMI
I can’t say yes or no but the truth is that there is no way you will be in a business for long and your customers won’t owe you a lot of money unless it’s not a big business. In my own case, I still have some money hanging since 2012, 2013. So, I think it’s not a peculiar situation. And you can’t say because your clients owe you, you now shut your door against them.
It has really affected my business. It’s even affecting it right now because I need to travel out and buy some stuff but I don’t have enough money now. Even to meet some domestic responsibilities is not that easy at the moment.
But I thank God I am not begging to sustain my business. Very soon, I believe God will bless those that owe me, and they will al pay back. I think the economy itself doesn’t help matters. The only thing I am doing to control the situation is to minimize the quantity of goods I give out on credit. Also, to keep persuading my debtors, and also praying for them, I believe very soon, things would stabilize.
PRINCESS CHINEKE, Beacon Nigeria Limited
Credit is part of any successful business. So, we have some clients who don’t pay for services immediately. It doesn’t affect us negatively.
On how we control it, we put a ceiling on the maximum amount a client can owe. By and large, credit and business go hand in hand.
CHRISTIANAH AMODENI Destiny Homelinks Caterers
No one will own a business without one or two persons owing you except you own a super market where people have no choice than to pay immediately after their purchase. Yes, a lot of my customers are owing me.
By making sure I get paid more than half of my money before I render any form of service and make sure I get my balance immediately I finish my work.
AMARA LINDA IKE, Linda’s Pot
We are not owed by our customers. Business is moving on fine with prompt payment for services. Debt kills business. So, every serious entrepreneur should avoid it. He/she should also appeal to customers to always pay their debts.
TOYIN OYEDOLA, Teetop Entertainment
It’s one of the aspects of doing business. We operate in a way that credit doesn’t affect us. We are into entertainment and those who call for our services pay at our office. What we do to guide against asking for credit is to ask for at least 80 percent of our pay before performance while the 20 percent comes after the show.
DEMOLA ADUNOLA
A lot of customers are still owing us. There is nothing we can do about that. It’s part of business, and can’t be fully eradicated. Customers will always owe you so far you’re still business. The only thing we do to control the situation is by telling them all the time the effect of such attitude on business.
Huge debts from customers, definitely, will retard the progress of business. So, one just needs to work towards minimizing the rate at which one gives out goods on credit to clients.
LANRE AKINYEMI, Product 7 Clothing
Not a lot, only a few percentage. We allow buying now pay later, it’s part of business. It hasn’t affected our business because those owing us are not many and we do all within our power to control it.
By giving discount on purchase to encourage payment at point of purchase.
FOLUSO AKINWUSI, Neo Kreationz
Yes. It is just surprising how people feel comfortable owing other people. For my kind of business, I make sure I collect 70 percent of my money before I start working for you and once I am done, I get my money before the customer takes away his/her material.
BUSHRAH OLAGUNJU, Priceless Touch Creations
No. I’m not been owed. Although, it has happened just once, the customer paid part and paid up the balance days after. I make sure that I sell at a reasonable price and convince my customers that particular style of designer bags I make might not be available anymore.
Selling on credit has great effects on business. It easily kills. It doesn’t encourage business owner; It affects the capital; and gradually you won’t be able to keep track of what profit or loss is been made in the business, among others. That’s why I don’t do it, and I am contented with the little sales I make.
IFEOMA OMA AREH, WildFlower PR & Coy
Yes I am. It affects execution of projects. When we first started it was harder now it’s a little easier to say no to certain things.
DANIEL MORKA, Lereve Co’
Yes, I am. It’s quite surprising how a lot of people feel comfortable even when they’re drowning in debt.
It affects business a great deal. Most times I have to put in personal money to keep the business running.
TAI ELEMOSHO, Montai
You cannot do business without giving credit. The only thing is that you must limit the quantity you give out. You cannot operate in a country like Nigeria without giving credit to your customers, especially when you sell expensive things.
For example in my own shop, the least expensive shoe is N45,000. Imagine a person coming in to buy five of that and you expect him or her to pay at once. We can’t do without giving out credit.
I am lucky because most of my debtors pay up after sometime, except on one or two occasions when somebody owning me about 350,000 died. That was a bad debt for me.
What I do now is to put a limit to the credit that I give my customers. The highest credit I can give is N100,000. In case the person refused to pay, you know you are in safe situation.
