“Pala utang na customers” or customers that Don’t pay upfront 

Doing business in the Philippines as a Water Refilling Station (WRS) entrepreneur is not easy, especially when customer payments are delayed. These “Pala-utang na customers” can be very problematic for business owners. Many customers in the Philippines prefer to make their purchases on credit. While this can be acceptable depending on the management, most of the time it leads to losses. 

The main issue is that often inexperienced riders handle the payments and not the owner. Sometimes the delivery boy might claim that the customer did not pay or only made a partial payment, when in reality the customer paid in full. This makes it difficult for the owner to know whom to trust. 

Another problem is when people skip a few payments, and their dues are gathered over weeks or months. When they finally begin to pay, the amount barely covers what they owe. Then, they continue to buy more water without clearing their previous balance. This results in a huge loss of funds for the business since selling water is the core activity and main source of income. Moreover, it can lead to conflicts between the customer and the owner, causing the customer to stop paying entirely. 

These are some of the issues with ‘let customers pay later’ systems. There can be misunderstandings about the money, and the business may end up losing a lot. To fix this, we introduced a new feature in the Ka-Tubig app to solve such issues in a better way. 

Our store management application has a Buy Now Pay Later option (BNPL). This system records all payments so there will be minimal or no ways to defraud the system. With BNPL, the store owner can put a limit on how much credit a customer has, which is useful in managing debts. The Marketplace app also helps by allowing owners to request credit limits, adding an extra layer of protection. Store personnel can see the unpaid amount and communicate it to the customer before accepting new orders. 

One great benefit of this solution is that it won’t strain the relationship between the owner and the customers. If credit is well managed, owners get paid on time, while customers have the option to pay later without accumulating too much debt. This system secures the business’s money and helps clients leave satisfied. 

The Ka-Tubig project is a set of apps designed to be used by each player in the community. WRS owners, like myself, can organize orders and track payments using these apps. With Ka-Tubig, owners can minimize lost revenues due to uncollected accounts. This project aims to make WRS businesses more sustainable and profitable in different parts of the Philippines. 

In conclusion, managing “Pala utang na customers” is very important for WRS businesses in the Philippines. With the BNPL feature and tools like the Ka-Tubig App, WRS owners can manage money better, reduce unpaid debts, and ensure steady earnings. This safeguards the business and keeps clients happy, facilitating lasting success in the company’s operations. 

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