This is a discussion that I can relate with, I have been in a position in which I was selling my products in which my customer base was comprised of both friends, family friends, referrals, and co. the issue of having debtors in business cannot be avoided completely but can only be minimized as much as possible because it could have an adverse effect on the business finances and if not handled properly could eventually collapse the business. in my case, i try as much as possible to minimize it by laying down strict rules and terms of conditions from the onset and could be a little bit understanding and lenient with customers that I know have earned my trust in the past and will always avoid defaulting payment beyond the stipulated time.