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Entrepreneurs on how credit can make or mar business (3)

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…

Ugor Stephens

Ugor Stephens

UGOR STEPHENS, Bullight Films

Yes, I am owed a lot by some of my clients and movie marketers and some content suppliers. The result of this huge debt is negatively affecting my production as a movie maker. Making new movies now becomes a problem.

I am applying dialogue and negotiations for now, to maintain my production and also taking necessary precautions not to give out any of the movies without full payment again.

Kech Simon

Kech Simon

KECH SIMONS

I believe there is hardly any thriving business that doesn’t have cases of deferred payment. Circumstances would always arise in business that would force one to consider granting credit to their customers or client. Of course, I have a good number of debtors.

There are some that easily pay up and there are ones I have to harass before they pay up. Even so, I have had to write off debts which I believed I could not recover.

Generally speaking, I will say credit affects business in more negative ways than positively. However, I see it as a necessary evil. One only needs to minimize the extent to which they grant credit, especially to

Ubi Franklin

Ubi Franklin

individuals.

UBI FRAKLIN, MMMG

We are not owed much because ours is a service oriented venture. We however, consider old time clients in appreciation of their patronage. Credit is good for business if effectively controlled.

If there’s any need to grand credit, we have a department that audits debt profile. This way, we run out of trouble from bad debtors.

Tokunbo Akinbobola

Tokunbo Akinbobola

TOKUNBO AKINBOBOLA

Akinbobola Properties

Not that much, there is no way an entrepreneur will avoid selling on credit. The responsibility is on you to manage the situation.

It doesn’t in anyway affect us because we don’t give too much to the extent that there will be no money again to continue in business. We have to pay the bills, staff salaries and others. We always encourage payment before service.

Tochukwu Michael

Tochukwu Michael

UGAFOR TOCHUKWU

Asandrea Collections

Yes, but the truth is that I blame myself for some of them, I think I do business with 100 percent passion and I trust people easily. I call my clients my friends, that is why some of them treat me badly. Let me share the last incident. My Malaysia based client who ordered $10,000 worth of clothes paid 70 percent first time, when I concluded the job he paid another 20 percent and pleaded that He will pay in the 10 percent balance that I should send the clothes to him. Due to the trust he had on me by giving me $9,000, I sent him the clothes. I thought I could trust him with $1,000 balance. Till date, he hasn’t given me the money, so, you see what I mean.

It has affected it a lot, in fact it hurts too. After making a beautiful cloth with pure Italian material hoping to receive your balance you won’t see the client till it pleases him/her. This hinders the progress of business.

I made a new policy, if you order a cloth, you pay in 70 percent to balance 30 percent when the wear is ready but I tell you many of the clients will leave their clothes till when it pleases them. Sometimes you give a client two weeks to pick his/her cloth, however, in three months you will not see the owner until it

Toyin Kolade

Toyin Kolade

pleases them to come.

TOYIN KOLADE, Fisolak

Whether you’re running a big or small enterprise, you can’t avoid being owed. The only thing is that you don’t allow such debts to accumulate in order to remain relevant in the business. Some people don’t care, they can owe you for years if you’re not very careful. One needs to be very strict and prayerful for the business to survive.

Mr. Latin

Mr. Latin

MR. LATIN

Yes, sometimes people owe in the course of your transactions with them. The only thing you need to avoid is allowing that to wreck havoc on your business. If you must remain in business for the good of it, you need to be very much concerned about credit control. And to reduce the volume of debt by your clients, you need to be very strict at times.

 

Arinze Okonkwo

Arinze Okonkwo

ARINZE OKONKWO,Jaspido

No! I don’t do credit. If you are coming to the market, bring your money. Another condition is if you deposit then balance up later.

I don’t give out credit so it does not affect my business. I can’t control what is not affecting me. I don’t give credit.

 

Adebisi Adeeko

Adebisi Adeeko

ADEBISI ADEEKO, Bisiano Signatures

There is no business that would not have cases like this. I have a good number of debtors but I feel bad when I have to harass them for payment I can’t explain how much it has affected my business but I still thank God. I only need to minimize credit to my customers.

 

Thelma Onyekwere

Thelma Onyekwere

THELMA ONYEKWERE, Thelma’s Place

Credit sustains business, though as a matter of business policy we don’t sell or render services on credit.

We have on ground a standard policy that determines who gets a credit facility. This has been very helpful.

 

Lateef Oyebanjo

Lateef Oyebanjo

LATEEFAH OYEBANJO

Latty Queen Stitches

Yes, a lot of my clients are owing me but we try to manage the situation. It does financially, but we don’t allow it to affect our profit and capital.

We have reduced our credit facility. Besides, we do debt recovery all the time.

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