Other than "Not investigating customers", there are other mistakes that Japanese companies are likely to fall into. That is "Trusting trading partners too much". Of course, you cannot do business without trusting the other party. However, it is dangerous to trust blindly.
This is especially true for SMEs and other business managers who have closely related transactions, such as family exchanges. For example, in the West, it is not uncommon to invite trading partners home. Home parties are also popular.
On the other hand, in Japan, calling someone home is centred on people in the office, even in work-related situations, and is limited to customers who are really close outside the office. Others are usually entertained with wining and dining.
However, in the West, customers are invited to their homes regardless of closeness. Without knowing that, there are many Japanese managers who will remit their mind when they are invited to their house.
From such a sense of security, for customers who have to take decisive action such as delayed payment, they may take things lightly. This becomes a fatal wound.
It is important to take action early in the recovery of delayed debts. Getting a late start decreases the recovery rate accordingly.
At the time of emergency, to be able to take prompt action without being caught in personal feeling, it is necessary to think that being invited home is just mere entertainment, business is business and keeping a distant relationship with your customer.
