Business plan to close....

[Eillene]

Got small sari-sari store and planning to close it,some people can't control their credit im shy telling them too!.what can i do to deal with it and stay my store open?.

[Smiley]

It can be hard to collect money,sometimes it is hard to even bring up the subject but it has to be done or the business and the dream could both perish.
Maybe you could start dealing only cash sale.When people ask for credit explain how close you are to having to shut down and make sure they understand that unpaid accounts are what is killing the business.Be polite,but firm.If they understand that they might really be hurting you they may make an effort to pay what they owe.
I have had some real horror stories about collecting debts from people that had no intention of making good.

[Eillene]

Hi smiley

I already got a chance to talked to people who can't understand their credit and my business yes I get polite and somehow they get hurt but I need to do it and now business as usual!..im happy they understand me..

[wayne208]

Smiley I can Only give people One word of Advice . Never Loan Money to Friends .. I loaned 2 thousand to a Good friend of Mine . I got paid 1 thousand then He declared Bankruptcy . He owed a Lot of People Money besides Me .. He Paid No One All That He Owed them . Eillene Remember that it is Business .Nothing More Nothing Less. Remind People of that .

[Smiley]

I have loaned money in the past to people that I do not particularly like. . . . simply because I knew that I would not have to see them again. I used to collect money for people,I don`t do that anymore.It is an ugly business.
I deal mainly in restaurant equipment.I have customers trying to buy stuff that they clearly cannot afford.I also have fairly successful customers that have very poor money management skills,or lifestyle issues.I really think that this will be my last year dealing with it.Time for a change

[red]

Thing is when you say no to neighbors that you no longer allow credit on your store, next time when they have money they will buy to another store.

[Edwin]

I have two rental house, and they have not been a money making deal! I seldom raise the rent, and I am too trusting, too believing. It would be embarrassing for me to write here about how much money renters have cheated me out of. I have let them get behind, and I have given in to them, when I should have sent them down the road. I had one renter that gave me sob stories, which I accepted. They would pay some, not all, and then end up owing me more than ever. I am sure one renter tore my house up, because I got tired of being ripped off by her, and I talked too straight to her, so more holes in the walls, a door broken off at the door casing, and the basement left full of garbage, mostly not even sacked. Then I made a deal with the next renter to haul it off, they took my money, and never did haul it, and I ended up hauling it myself! I had 3 renters in a row in one house, all left owing me money, and 2 of them damaged the house! Thanks to the County Sheriff who lives behind that house, I now have a good renter there! I have our younger daughter and her daughter in the other house, and they are doing the best they can, not able to pay the full amount, but I decided since they are my kids to work with them on what they are able to afford. They are not destroying the house, but they are working on it periodically, and so at least now I have peace of mine, knowing that I have no renter who are abusing, defrauding, and damaging me! It is a very good feeling. I don't mind helping my kids as long as they are trying, making an effort too!

With these little sari-sari neighborhood stores in the Philippines, you just have to figure what you are able to lose and keep going. If you figure they eventually will pay, then sometimes it makes sense to keep working with them. If you figure they will give you money when they have it, and you can afford to operate that way, then maybe it will pay eventually. Even though you don't collect from them what they owe you, you could let them know that things are hard for you, and please pay as soon as you can! If you can keep things friendly, then maybe eventually it will work out. What is sad is when someone, like my renters can pay, but because of poor management, or because they just don't care; want to spend, waste, blow their money in other ways, then they leave you in a hard way. That is what is sad. It is okay to work with good people that are not taking advantage of you, but doing the best they can!

[DannyJones]

Got small sari-sari store and planning to close it,some people can't control their credit im shy telling them too!.what can i do to deal with it and stay my store open?.

Two choices:
(1) Have mean nasty guy that collects, he gets a percent of collections. Sounds harsh but that is really how money lenders operate in 3rd world countries.
(2) Cash only. No cash then no sale.

[Smiley]

Unfortunately,what often happens is the people really do intend to pay off the debt but things escalate to a point where the debt load becomes a serious issue. Then what seems to happen is,the person becomes embarrassed at not being able to ay and begins avoiding the one they owe the money to. Then the creditor finds him/her self out the money and the customer is spending cash with someone else!
If the only way someone will do business with you is for you to ignore what they owe you that person is not much of a friend or neighbor and not much of a customer. By losing such a person as a customer you really have not lost anything.

[cheryz]

my suggestion to you dear... just make ah small banner or a cardboard posting "no credit please" at your store that you dont accept credit just cash only. hope it can help.