Chronicle takes aggressive debt recovery steps
July 21, 2003
The Guyana National Newspapers Limited, printers and publishers of the Guyana (daily) and Sunday Chronicle, has announced that it is taking aggressive steps to recover considerable sums outstanding at 30th June, 2003, as arrears for advertisements published and newspapers sold.
The company has indicated that it is very serious about its debt recovery exercise because non-payment of the outstanding amount is adversely affecting its cash flow. It said that defaulters will be allowed reasonable arrangements to clear their accounts but that those who fail to do so within the periods given will face legal action.
The statement said the company had been tolerant and lenient with its debtors and because of that “some of them have taken advantage of the situation.”
“But the time came when a serious view had to be taken of the matter and firm steps implemented to recover its cash.”
The company is considering publishing the names of those persons/ organizations that owe it moneys and are not paying up. It is also planning to utilize the services of a Debt Collector who will be paid a commission on the debt he/she brings in.
Different approaches are being used for recovering advertising and circulation debts. Most of the advertising debt arose from a plan in which customers who were granted 30 days’ credit. But they failed to honour their debt to the company. Some were allowed holdovers; those, neither, were paid. Some amounts have been outstanding since 1998.
“The greater part is owed by private businesses while a lesser amount is owed by the public sector, which includes government ministries and departments and public corporations.”
The approach to these advertisers is to send them notices asking them to pay up their debts on or before 31st July, 2003. Some notices went out last Friday. The remainder is scheduled to go out today Those who may have already liquidated their debts are being advised to disregard the notices. Those who have queries are requested to go into the company and discuss them in order to have their matters cleared.
The circulation debtors comprise mainly agents and vendors who are given credit to sell the company’s newspapers (Guyana and Sunday Chronicle) and are required to clear their debts every fortnight. The vendors are located in Georgetown. Agents are located in other areas of the country. They earn a commission of 20% on newspapers sold. Two members of the Accounts Staff have been assigned to work in this area.