With the informal economy I refer to doing business without a formally established company or whereby a person does business on its own account without being registered to do business; and / or business is done without or with (very) few and / or insufficient contracts, invoices, order forms, or otherwise official documentation in place.
Now I have always found this a hard nut to crack, debt collection in the informal economy. Perhaps this is less of an issue in North America or Europe (or at least Northern Europe), but in Latin America and the Caribbean where the size of the informal economy is considerable and where it forms an indispensable way of life, the informal economy is also in the debt collection business part of reality.
But how do you collect debts in if there is no formal basis to rely on? Here are four things to focus on.
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