Today, I remembered a question a friend passively asked me over the weekend – “Why do rich people like to owe?”
The question was from a place of frustration, after one too many delayed payments from services rendered. Luckily, we could have a laugh about it.
SMEs should be protected by Government legislation from pernicious payment terms, especially from the notorious sole proprietorship group.
Blue chip companies have some corporate governance that help SMEs plan with some reliability, even though the payment terms are sometimes not supportive. But reliability of cash flow as supported by a contract is a plus.
The sole proprietorship cadre though have their payment terms hinged on the mood of an individual, and not on the letter of any contract. As moods swing, so do payment terms.
My friend was struggling to keep the business afloat while using all begging tactics to get payment for services rendered. The sole proprietor, on the other hand, was getting irritated at being reminded to pay for services rendered. The Nigerian entrepreneur’s quagmire.
I am thankful for entrepreneurs who do not let up, in spite if all nudges to do so.