• Due to increasing competition and demand for clients most businesses are forced to sell on credit.
  • The ineffective handling of credit policies or procedures causes delinquency.
  • There is increased abuse of the credit grace period leading to slow or poor remittances.
  • The sales department sets high targets for marketers who strive to sell in order to achieve sales targets.
  • Multiple borrowers and potential defaulters accessing credit to services or products without tangible repayment plans.
  • Lack of trained collectors to demonstrate professionalism within the credit, revenue and debt industry hence recovery is mostly done by the court bailiffs or auctioneers.
  • Every business competes for cash which is limited and scarce hence increasing debt portfolios.
  • Increased dishonesty and bribery as some collectors connive with debtors.
  • There is inadequate follow up especially on old accounts as staff concentrate on easy to collect or new accounts.
  • Most debtors prefer instalment payment hence leaving huge balances aging on account and later accumulate arrears.
  • Lack of governing authority to oversee credit and debt creates laxity and brutality.
  • Inconsistency and irregular paying habit in some industries.
  • Busy schedule of management hence unable to monitor effectively


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