Introduction
To begin with, it is necessary to make a brief description of the essence of the case. It is centered around the problem of how to properly negotiate and deal with debts without losing the client himself. In this case, Cresol provides its clients with the opportunity to lease land and invest in various plantations. The situation is as follows: in January 2018, a local Brazilian farmer signed a loan contract to invest in a corn and soybean plantation. They confirmed two contracts, the payment for which is provided in two installments. By November 2018, the farmer had not made a single payment for any of the above-mentioned contracts.
Analysis of the Case
It is also necessary to analyze the main participants in these negotiations and the situation they had to face. A farmer is a person with a good credit history, which is why he was offered two contracts for investment. The terms of the loan state that he provided his property as a levied item in case of non-payment (Dias et al., 2019). In addition, in this case, the financial agent is personally acquainted with the farmer, which plays a significant role in their interaction. The farmer’s character is quite short-tempered and rude, which does not provide opportunities for active participation in negotiations.
In addition, the farmer faced a divorce process with his wife, who forbade him to sell the family’s property and the products they grew. Thus, there is a problem that a person is faced with life problems that can sufficiently affect his ability to pay off the loan (Dias et al., 2019). Therefore, in this case, a competent and experienced approach to negotiations is required to clarify the farmer’s situation. On the other side of the negotiations is a financial agent who has experience in the company. She also has a higher education in the field of Credit Cooperatives, which indicates competence and professionalism, which is essential for these negotiations.
Negotiation Techniques
Analyzing this case, it should be noted that the way of soft interaction with a person is essential. On the other hand, it is necessary to act fundamentally in the most problematic situation, offering clear and understandable solutions for the debtor, in which he will also be interested. If the financial agent sought only to collect the debt and not to offer a practical solution, leaving the problem of finding a way out to the farmer himself, then this situation would end in court (Dias et al., 2019). In order not to lose the client, the financial agent offered an alternative to paying the debt. For the farmer to be able to endure the difficulties associated with payment, he was offered an additional loan. Thus, in this case, the technique of mutual concessions and compromise is manifested.
Therefore, it is important to note several fundamentally important techniques that contributed to a positive outcome in these negotiations. Strict and persistent behavior is not effective, as it leads to the loss of the client; therefore, it is necessary to enter the position of a person and offer an effective solution (Dias et al., 2019). It is also necessary to be sufficiently transparent, demonstrating all the possible consequences of deciding for a person. Both parties should focus on the future instead of what has already happened in such cases (Dias et al., 2019). It is impossible to change the decisions made regarding the issuance of a loan to a farmer, but it is necessary to understand the possibilities of the debtor and draw up an effective plan based on this.
Conclusion
In conclusion, it should be noted that some negotiation techniques can be distinguished from this case, which can be applied in other situations. In addition, it becomes clear from it that personal interaction in negotiations plays one of the key roles in finding an effective and positive outcome. It is necessary to understand what is required from the situation itself to find a competent and correct approach to interaction.
Reference
Dias, M. D. O., Ribeiro, A. P., & Albergarias, R. (2019). When customers do not pay: A winning negotiation case in Brazil.Journal of Economics and Business, 2(2), 431–447.