1. Price the interest correctly
The simplest and clearest method for customers is a flat rate over the whole term. A device at 12,000, 2,000 down, 10,000 over 12 months at 20% for the term:
- Interest = 10,000 × 20% = 2,000
- Total installments = 12,000
- Installment = 12,000 ÷ 12 = EGP 1,000 a month
20% over a year is not the same as 20% over six months. Keep a rate table by term so every salesperson quotes the same price.
2. The down payment is your safety
It covers part of the product cost if the customer stops paying. Many shops ask new customers for more and reliable repeat customers for less.
3. A guarantor with full details
A name is not enough. Record national ID, phone and address, and print them on the signed contract.
4. Remind before the due date, not after
A WhatsApp message three days before the due date reduces late payments more than any call afterwards, as long as it goes out every month without someone remembering.
5. Review late payers daily
A list of who is late, by how many days and how much. A friendly call in the first week, then the guarantor. Arrears left for a month without follow-up rarely come back.
6. Know what installments really earn
Interest is not profit until it is collected. Booking it as revenue on the day of sale overstates profit. Book it as deferred and recognise it with each collection.