If you’re abreast of Nigerian Twitter and other social platforms, you might have seen this slang in recent times.
The best of us do this with our personal finances, and unfortunately, extend the habit to the workplace when the time comes to settle bills for services rendered or supplied goods. This is where the need for payment plans and viable debt management come in.
Are you struggling with a debtor who can’t sustainably meet your repayments? Do you have a customer who routinely gives excuses when you send invoices?
Debt management plans
In simple terms, a debt management plan is an agreement between you and your creditors (the business you owe money to) or vice versa, on how to pay – off the amount owed. These plans are mostly handled and managed by debt managers/Debt Recovery agents, operators, or providers. They negotiate with your creditors and manage the payments based on how much the debtor can afford to pay monthly.
To decide what the best move is for you concerning your business and its debtors, you can take these simple steps in creating a debt management plan for your business.
1. Know what works best for your business and defaulting customers:
A Debt Management Plan (DMP) only serves its purpose if your customer can afford it . Getting your money back is important, and so is sustaining a good relationship with your customer. Therefore, a trained Debt Recovery agent finds out what works best for your customer in terms of what they can afford, and creates a plan in line with the information obtained.
2. Document your plans (aka protect yourself legally):
Having a written policy to back up your DMP is essential as this will give your customers a clear knowledge of what the terms and conditions of the plans are and ensuring that they consented to the terms of the policy before the service is rendered and at the point of negotiating a DMP and each party’s obligations. With this in place, there will be no wiggle room for your debtors to deny knowledge of their obligations and the purpose for the DMP.
3. Consider the benefits of hiring a Debt management agency.
One of the biggest business tips from the world’s biggest brands is “If you don’t have to do it, outsource it”. I like to add that “If you would outsource it, outsource it to the most capable and cost-efficient hands you can find”. Ladies and gentlemen, Mwanga is the most capable and cost-efficient hand you can find (and bragging is not a practice I’m fond of, I’d rather state facts as they are).
It is possible to set up a plan by yourself but is it a good value for time (which is the number one resource to guard) and money to handle the process by yourself? Do you possess the knowledge and expertise to handle unique scenarios?. If you ask me, the benefits are worth the shot and the risk is minimal.
We would love to work with you, you can hire us in simple steps.
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