Complete Lesson

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Dialogue/Story

Slow Speed begins at: 1:25

Explanation begins at: 3:11

Normal Speed begins at: 15:34

Ken: Look at this list of customers who still owe us money. How is this business supposed to survive if we keep extending credit?

Marjorie: We started doing it because some of our best customers didn’t have ready cash. They’re good for it.

Ken: I know they’ll eventually pay their outstanding debt, but what are we supposed to do in the meantime? We need that cash to buy stock.

Marjorie: We can call in the debt and set a deadline for repayment. We can give those who are really hard up an extension on a case-by-case basis.

Ken: What if they still don’t pay? We’d have to turn it over to a collection agency. We’d only get 40 cents on the dollar, but we’ll have to close our doors if we don’t collect.

Marjorie: Using a collection agency would be a last resort. I’ll call each of our major debtors and have a talk with them. I’m sure they’ll come through.

Ken: I hope you’re right or we will be the ones asking for credit!

Category: Business | Money