CHALLENGES FACED BY SMALL SCALE BUSINESS OPERATORS WHO SALE ON CREDIT.
In today’s business news, our Correspondent examines the hurdles experienced by small scale business operators who engaged in credit sales.
A small scale business is one that is not large in size and is usually personally managed by the owner. The owner could also employ one or two persons to assist in the smooth running of the business.
Trading, that is buying and selling of goods is the most obvious form of small scale business. In a bid to make quick sales, most of the people involved in this type of business take their goods to offices and establishments or stay at strategic points to market them. Others who can afford it, rent shops for the display of their goods.
Most of these business operators rely on delayed payment and workers who they often times have an understanding with to pay at the end of the month when they would receive their salaries. Some Civil Servants who partake in this type of business use slogans such as book me down, as usual month end, double gain or civil servants way to describe the transaction.
One of the business operators at Ogbete Main Market, Mr Anene Chima, said he sold on Credit to Civil servants who needed the commodity.
According to Mr Chima, he sells on book me down arrangement with increased profit margin since the buyer does not pay immediately.
For another seller, Mrs Nneka Okoronkwo, the reverse is the case as some of her customers failed to keep to their words. She lamented the non compliance by customers with their initial understanding to pay on agreed dates, saying that this had adversely affected her business as she ended up not having enough money to re-stock.
When Radio Nigeria visited some places in Enugu metropolis, some people interviewed gave divergent views about book me down or hire purchase.
They warned the small scale business operators who got involved in book me down, to tread continuously and ascertain the credit worthiness and integrity of the people they were dealing with.
JULLIET UGWU