When Customers Do Not Pay: A Winning Negotiation Case in Brazil

Abstract

Debt collection without losing a valuable customer is a challenge that business negotiators face daily, no matter the size, type, or country of the organization. Currently in Brazil, near 62.6 million customers with overdue accounts are registered at the Credit Service Protection (Servico de Protecao ao Credito – SPC), representing approximately 40 percent of the Brazilians between 18 and 95 years old. This single case study investigated a successful farm debt collection case, negotiated between a farmer and a financial agent from a credit cooperative in Parana State, Southern Brazil. Key findings pointed out critical success factors on debt collection negotiations, useful to business negotiators in general such as financial agents, bank managers, mediators, and overall practitioners. Discussion and recommendations for future research complete this work.