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Khataby Lacspace
Running a shop

Asking for your money without losing the customer

Chasing udhaar is the hardest part of running a credit book. A routine that gets you paid and keeps the customer.

6 min read

In short

  • Chase by age, not by size. A ₹500 debt at 90 days is a worse sign than ₹5,000 at 10 days.
  • Send the reminder to their phone, not across the counter. The audience is what turns a request into an argument.
  • State the balance and the date it started. Never the tone, never the accusation.
  • Set a limit and a term when you open the khata, so the awkward conversation happens once, at the start.

Almost every shopkeeper we speak to says the same thing: giving credit is easy, asking for it back is not. The money is not usually lost because a customer refuses. It is lost because nobody wanted to have the conversation, and by the time somebody did, the balance was old enough that the customer had stopped feeling it was real.

Age is the signal, not size

The instinct is to chase the biggest number. That is usually wrong. Your largest balances often belong to your best customers, who buy a lot and settle regularly. The dangerous balance is the small one that has not moved in three months.

Sorted by age, the list tells you who to contact. The message carries the facts, and nothing else.A list of customers sorted oldest first, with a message leaving it and arriving on a phone showing the balance and the date it started.Oldest firstRamesh62 daysSita Stores31 daysAnil9 daysBalance ₹ 4,200Since 12 Juneno argument at the counter
Sorted by age, the list tells you who to contact. The message carries the facts, and nothing else.
Age of balanceWhat it usually meansWhat to do
Under 15 daysNormal trade creditNothing
15–30 daysSlipping, often just forgottenOne plain reminder
30–60 daysNeeds a conversationAsk, and agree a date
Over 60 daysWill not fix itselfAgree a part payment, pause new credit

These bands are a starting point, not a rule. A wholesale customer on 45-day terms is not late at day 40. Set your own bands and then apply them consistently, because the consistency is what stops it feeling personal.

Send it to the phone

The reason asking for money in the shop goes badly is rarely the asking. It is the audience. A customer who would happily pay tomorrow will dig in when three neighbours are listening, because now it is about standing rather than money.

A message to their phone removes the audience entirely. They can read it, feel whatever they feel about it privately, and pay without anyone watching them do it.

Decide the limit before you need it

  1. 1

    Set a limit when you open the khata

    When a customer first asks for credit, agree a ceiling out loud. It is a far easier conversation on day one than at ₹9,000.

  2. 2

    Agree a term at the same time

    Weekly, monthly, or on payday. A balance with no expected settlement date never becomes late, which is exactly why it never gets paid.

  3. 3

    Record both against the customer

    Written down, the limit is a shop policy. In your head, it is your opinion of that person — and that is what makes enforcing it feel like an insult.

  4. 4

    Review the list weekly

    Five minutes, sorted by age. Anything that has moved a band gets a message that day, before it is old enough to be embarrassing.

When somebody genuinely cannot pay

Sometimes the answer is that the money is not there. Pushing harder does not produce it, and it does cost you a customer who may be solvent again in two months.

A part payment on an agreed date is worth more than a promise of the full amount at an unspecified one — it re-establishes that the balance is real. Pause new credit while the old balance clears, and say so plainly rather than quietly refusing at the counter later.

Common questions

How do I remind a customer about udhaar without offending them?

Send it to their phone rather than raising it at the counter, keep it to facts — the balance and the date it began — and send it on a predictable schedule so it reads as routine bookkeeping rather than an accusation aimed at them personally.

Which customers should I chase first?

The oldest balances, not the biggest. A small amount that has been outstanding for ninety days is a stronger warning sign than a large amount from last week, because age is what predicts whether you will be paid at all.

When should I stop giving a customer credit?

When they cross the limit you agreed at the start, or when a balance passes the term you set. Deciding this in advance and writing it down is what lets you say no without it feeling personal.

Does Khata send reminders for me?

Khata keeps each customer's balance and how long it has been outstanding, so you can sort by age and send a reminder to the number on file. The decision about who to chase, and when, stays yours.

Khata is free to use

Billing, khata, stock and reports on your phone. No card, nothing to cancel.

See what you get

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