# How to reduce bad debts and collect shop credit with respect

- URL: https://ck.abdohoo.app/pcm/blog/reduce-bad-debts-recover-shop-credit-politely
- Product: Credit Khata (https://ck.abdohoo.app/)
- Section: Small business
- Updated: 2026-10-15

> Most credit wey no come back na because e drift, no be bad mind: no due date, no reminder, total wey dem argue. Block am with limits and clear entries, den follow polite, steady ladder.

To reduce bad debts, stop credit from drifting: give every customer limit and due date, write every entry with wetin dem carry so person fit check di total, make di customer see their own account, and remind on time. To collect wetin don already pass time, follow steady, polite ladder: friendly reminder, second one with di statement, face to face talk and payment plan, and pause on new credit until dem keep di plan.

Most credit wey no come back no be fraud. Na balance wey grow without date, total wey di customer no too believe, or reminder wey nobody send because e dey shame dem. Each one of dem get solution.

## Why shop credit dey spoil

- **No date.** "Pay when you fit" mean different things to di shop and di customer.
- **No reminder.** Plenty shop owners dey wait make di customer bring am up, and plenty customers dey wait make person ask dem.
- **Total wey dem argue.** If di customer no sure say di number correct, dem go delay.
- **E grow too fast.** Without limit, small balance go turn big one before anybody notice.
- **Shame.** Customer wey owe plenty sometimes go stop to come at all, and na di worst thing for both sides.

## Prevention: di cheapest way to collect

1. **Give each customer limit.** Limit dey keep balance for size wey di customer fit really clear. See [How to set credit limits for your shop customers](https://ck.abdohoo.app/pcm/blog/how-to-set-credit-limits-for-shop-customers).
2. **Agree due date** when you open di credit account, and repeat am when you remind.
3. **Write items, no be only amounts.** "Milk 2 L, egg 1 crate" fit dey checked months later; "₦770" no fit.
4. **Make di customer see di record.** When customers fit check their own entries as dem dey go, disagreement go show early, while e still small.
5. **Record every payment sharp sharp**, including small part payments, so di balance wey you dey remind about go always correct.

## Know who really don late

Before you pursue anybody, look how old di money wey dem owe be, no be only di size. Big balance wey dem build dis month dey often safe pass small one wey nobody touch for three months.

For Credit Khata, **Reports → Old debts** dey do dis one for you. Payments dey clear di oldest credit first, so each customer "Oldest from" date dey show di oldest money wey dem never pay. See [Reports: cash book, old debts, sales and profit](https://ck.abdohoo.app/pcm/help/cash-book-old-dues-sales-profit).

## Polite ladder to collect

Climb one step at a time, and give each step few days to work.

StepWhenWetin you go do1. Friendly reminderFor di due date or just afterShort private message with di amount and how to pay2. Second reminderAbout one week laterSame tone, with di statement or link to their account3. TalkAfter 30–60 daysTalk face to face or for phone; ask wetin dem fit do4. Payment planFor di same talkAgree fixed amounts on fixed dates, and write di plan down5. Pause new creditIf di plan no holdOnly cash until di balance come down6. DecideAfter long time without paymentDecide whether to continue to pursue am or accept di lossSome things dey make every step work better:

- **Keep am private.** No ever remind person for front of other customers, and no ever for group chat.
- **Talk di exact thing.** "Your balance na ₦7,730, e due on 5 September" easy to act on pass "abeg clear your debt".
- **Make paying easy.** Put your JazzCash or Easypaisa number, or link where dem fit pay.
- **Thank every payment**, even small one. Customer wey feel say you see their effort go continue to pay.

![Di Reminders screen for Credit Khata with three customers wey time don pass, their due dates and balances, and Remind everybody button](https://ck.abdohoo.app/storage/content/library/web-reminders.webp)Customers wey time don pass, arranged for reminder, each one with di date wey e dueWords wey ready to send for each step, for Pidgin, dey for [WhatsApp payment reminder templates for shops](https://ck.abdohoo.app/pcm/blog/whatsapp-payment-reminder-templates-for-shops).

## When di customer argue di total

Customer wey no agree with di total no go pay am, no matter how many reminders you send. Make di argument be di first thing wey una go settle:

1. Go through di entries together, line by line, with dates and items.
2. If you find mistake, correct am and talk am.
3. If you no find, show dem di entry and di items and explain am calm.
4. Once una agree di number, agree di plan.

For shared ledger, di customer fit mark di exact entry wey dem dey question, with note, and you fit reply for dat line. Di record go keep both sides of di conversation. See [When customer argue entry: check, correct and settle am](https://ck.abdohoo.app/pcm/help/resolve-customer-disputes).

## Payment plans wey dey work

- **Small and regular** pass big and once once: ₦1,000 every Saturday easy to keep pass ₦8,000 "next month".
- **Tie di dates to income**: salary day, di weekly market day, harvest time for farmer customers.
- **Write am down** and remind dem di day before each instalment.
- **Keep new credit small** until di old balance dey under control.

## How to pause credit without wahala

To stop credit na di hardest step for di relationship. Talk am privately and plain: "Until di old balance come down, na only cash I fit sell give you." Den make di rule enforce imself, so your staff no go dey for middle.

For Credit Khata, set dat customer credit limit to zero under **Limit**. Di counter go den refuse new credit for dem unless di owner or manager choose to pass am, so cashier no go ever need to argue. When di balance don dey under control, raise di limit again.

## When to stop to pursue am

Sometimes debt no go come back: di customer don move comot, or their situation don change for good. At one point e better for your time, and for your peace of mind, to stop to pursue am, keep di record, and stop to give dat person credit. If big money dey involved and you dey think of formal steps, ask for local advice first; di rules different from place to place.

## Di short version

- Prevent: limits, due dates, entries with items, record wey di customer fit see.
- Watch: how old di money wey dem owe be, every week.
- Remind: early, privately, exactly and with respect.
- Settle arguments before you ask for money.
- Agree small payments wey dey come regular.
- Pause credit calm calm when plan no hold.

If you handle am like dis, to collect credit go turn normal part of how you dey run di shop, no be fight, and most customers go pay.

## Frequently asked questions

### How quick I go remind customer?

For di due date or di day after. Di longer credit sit without anybody talk anything, di harder e go be to collect am.

### E no good to send payment reminders for WhatsApp?

E dey okay if di message private, short and polite, and e give di exact amount. Most customers prefer message pass make you ask dem for front of other people for di counter.

### Wetin if customer talk say di total no correct?

Go through di entries line by line with dem. If you find mistake, correct am; if you no find, show dem di items with their dates. Statement dey make dis one quick.

### How I go stop to give more credit to customer wey no dey pay?

Stop new credit until una agree payment plan. For Credit Khata you fit set di customer credit limit to zero, so cashier no fit book any more credit for dem.