23-Debtor's Psychology
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Introduction of Credit Management for Overseas Trade

36 Things You Need to Know About Credit Management for Overseas Trade

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23. Debtor's Psychology

When I talk about debtor's psychology, I often refer to the well-known psychologist's "five stages of Maslow's needs".

It is a theory that human desires have stages if lower-level needs are not fulfilled, higher-level needs do not appear. The five stages of needs are as follows.

 

Stage 1 Physiological Needs

Stage 2 Safety needs

Stage 3 Love and Belonging 

Stage 4 Self-Esteem

Stage 5 Self-Actualization

 

"Physiological needs refer to basic desires such as food and sleep that are indispensable for human beings to live.

 

"Safety Needs" is the desire to live safely, want money and goods.

 

"Love and Belonging", also referred to as "Desire for belongingness", refers to social life where there is a desire for belonging to a certain group.

 

The "Self-esteem" is the desire to be evaluated by the group to which you belong, also referred to as the "Desire for approval".

 

"Self-actualization" is the highest level of desire to fully develop one's abilities and to grow oneself humanly. 

 

The five stages of this desire apply to companies and debtors. As the management of the company gets rigid, the level of desire of the manager goes down steadily and, in the end, it is better to somehow survive.

It is extremely difficult to recover from debtors who are reluctant to meet lower-level needs. It is important to always be aware of what level is the desire of partners you are currently negotiating are at and respond.

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【PDF】Introduction of Credit Management for Overseas Trade

Introduction of Credit Management for Overseas Trade

36 Things You Need to Know About Credit Management for Overseas Trade

This ebook was created as a resource for those who have trouble with diverse trading or want to learn Credit Management in a rational.

 

Chapter (Excerpt)

  • Major Differences Between International and Domestic Transactions 
  • Trade Reference
  • Bank Reference
  • Collection Agency
  • Reasons Behind Difficulty in Recovering Delayed Debts
  • Mistakes in International Transactions Where Japanese Companies are Prone to Fail
  • Customer Analysis ~ 5 C's of Credit
  • Dangerous Signs
  • Five Principles of Debt Collection