Uneasy Lies The Head That Wears The Crown

policy¹

ˈpɒlɪsi/

noun

1. a course or principle of action adopted or proposed by an organization or individual

A good company should have policies. These are a set of rules that govern the operations of an organization.

Little wonder when my new client wanted a credit facility covering a team trip, I diplomatically offered alternatives.

Our "no credit policy" was a fallout out of a January experience.

The year started right. My firm got flight ticket deals worth millions in Naira. High risk with a short settlement plan (Friday - Monday). I went for it after obtaining approval from my board. This deal was from an old client, an upfront had being sent and daily remittances were being made.

Then came deal number 2. My dear European client referred me to his friend and was willing to stand in for his White South African buddy.

This went bad fast. Credit worth millions was given, cheque was collected, promises were made, days turned into weeks, and months and the police got involved and then immigration (because he was a foreign national) and then we had lawyers and then came threats and counter threats and there was diplomacy till we recovered what we could and counted our losses in September. A terrible experience.

So we agreed as a board that we would no longer give credit.
Of course you know, this was next to impossible. Especially if you wanted to play in the big league.
In course of our journey in 2017, we did make exceptions. This was to men of UNQUESTIONABLE character. In my reasoning that accounts to 1% of the 180 million Nigerian (home and abroad).

The very few times we tried to extend such privilege, it almost resulted in a wild-wild west gun dual. Reality dawned on me in this proverb that says "it is not the same mouth used in collecting a loan, that is used for repayment".

Having considered our peculiar Nigerian culture and behavior towards credit facilities, it is in my opinion to play safe as much as possible. This company is a brand associated with certain levels of expectations. We just had to make it known that credit was not in our offering. In fact, we had partnered with a Micro Finance Bank to provide the necessary collateralized credit while we offer our travel services.

So when a client came to me recently bragging of how big his house is and how I made him feel like a criminal for not giving him credit, I tried explaining benefits of our float or pay as you go options.

But of course, I had to drop diplomacy when reasoning was not an option. Having explained what the dictionary meaning of policy is, NO CREDIT needed no explanation.

Nobody should be bullied into things they are not comfortable with.
As an entrepreneur, you will learn to make decisions that safeguard your business interests. If you take a risk, it may or may not pay-off. You will bear that risk.

So as you go about your business, you have to understand that the longevity of your business is your primary concern. So stand firm in what you believe in.


Till we meet again, keep winning.

Mr David Chiaka
Twitter: @MrChiaka