When people think about debt in business, they imagine big contracts gone bad or huge unpaid invoices. But the truth? For many Nigerian entrepreneurs, the real threat to their cashflow is the “small small” money owed—₦5k here, ₦10k there, a balance of ₦20k “we’ll settle next week.”
It doesn’t feel urgent. After all, you don’t want to “disturb” the customer for a small amount, right? You tell yourself it’s not worth chasing. But these little amounts, left uncollected, add up fast—and before you know it, you’re struggling to pay suppliers, restock, or even cover your own expenses.
WHY SMALL DEBT IS A BIG PROBLEM
1. It eats into your cashflow silently
Unlike a big unpaid bill, small debts don’t cause immediate panic. But they block the day-to-day cash your business needs to run. Imagine 10 customers each owing ₦10k—that’s ₦100k you can’t use.
2. It creates a culture of delay
If you allow small balances to drag for weeks or months, customers begin to see it as acceptable. Before long, paying late becomes a habit.
3. It shifts the burden onto you
When your money is tied up, you end up dipping into your own funds, taking loans, or delaying other payments just to keep things moving.
HOW TO STOP “SMALL SMALL” DEBT FROM CHOKING YOU
1. Set clear payment terms from the start
Never leave payment timelines to chance. Whether you’re selling a product or a service, state when payment is due—before or immediately after delivery.
2. Always collect a deposit
Even if you trust the customer, take at least 50–70% upfront for services, and full payment before dispatch for products. Deposits reduce risk and keep your cash moving.
3. Make it easy to pay
Send your payment details in one clear message. Offer multiple payment options—bank transfer, POS, mobile money—so customers have no excuse.
4. Automate reminders
Instead of waiting weeks, send polite follow-ups the next day, then after a few days. A simple, “Hi, just following up on your payment from [date]” keeps it professional.
5. Stop being shy about asking for your money
You’ve delivered value. You’re not begging—you’re collecting what’s yours. Confidence in requesting payment shows professionalism.
6. Review your credit policy
Not every customer should get a “buy now, pay later” arrangement. Reserve credit for long-term, trustworthy clients—and even then, keep it within limits.
FINAL THOUGHT
Small debts may feel harmless, but they’re one of the fastest ways to starve your business. Protect your cashflow like your life depends on it—because in business, it does.
Don’t wait until you’re chasing ₦500k before you act. Start with that ₦5k today.
