Title: Business innovation in credit and collection: a case study in a Brazilian water supplying company

Authors: Rosangela Maria Vanalle; Wagner Cezar Lucato; Ivone Dias Sato

Addresses: Industrial Engineering Post Graduation Program, Universidade Nove de Julho – UNINOVE, Av. Francisco Matarazzo, 612, CEP 05001-100, São Paulo, Brazil ' Industrial Engineering Post Graduation Program, Universidade Nove de Julho – UNINOVE, Av. Francisco Matarazzo, 612, CEP 05001-100, São Paulo, Brazil ' Industrial Engineering Post Graduation Program, Universidade Nove de Julho – UNINOVE, Av. Francisco Matarazzo, 612, CEP 05001-100, São Paulo, Brazil

Abstract: The major objective of this study is to propose an innovative and viable procedure for the recovery of overdue debts especially designed for low-income population in order to allow them to regain access to good quality drinking water supply. To verify the suitability of the proposed procedure to real-world situations, two case studies were conducted in communities in which the customer's financial situation precludes the maintenance of timely payments. As a result, it was possible to conclude that the reduction in the debt stock and default rates in those communities were significant after applying the new procedure. Hence, this study suggests that using a different way to deal with low-income customers is essential to obtain the best results in terms of financial recovery and also to make once again water affordable for them.

Keywords: overdue debts; water supply; water affordability.

DOI: 10.1504/IJBIR.2017.087095

International Journal of Business Innovation and Research, 2017 Vol.14 No.3, pp.382 - 396

Received: 23 Nov 2015
Accepted: 12 Jan 2016

Published online: 04 Sep 2017 *

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