Steem4Nigeriaccelerator Contest Week 126: My experience with daily contribution collectors (DCCs)

A person is at his shop selling or at market sun burning like fire, customers are pricing anyhow, and he's calculating how today will end. Suddenly, one man with small leather bag and biro comes in, greet him with smile, and say, “Hello sir I want to collect today’s contribution.” And he will quickly bring out ₦500 or ₦1000, give it, and he will jot his name inside one small notebook. Thats the daily contribution collector which almost every business owner knows.

Yes I know and even one of my relatives is one of them. Daily contribution collectors is everywhere. Some do call it daily thrift. Just the same idea: you will be giving small-small money every day or every week, and when the circle complete, you will collect a huge sum. For market women, mechanics, barbers, okada riders, even small shop owners, it's the easiest way to save money without bank problems.

The collectors do walk round market, shops, and even street corners. Them knows everybody, they are friendly, and they do use trust to hold the business. No paper agreement, no bank account, just pen and the notebook.

However,My own experience with daily contribution collectors have sweet and bitter side. I remember one time when I was selling phone accessories . And however every morning, one collector will just come, he'll collect ₦500 from me. At the end of the month, he gives me ₦15,000 cash. That money help me buy new stock. I didn't need bank queue, no need to fill form.

But another time, different collector took my money. He promise that he'll pay me after three months, but before you know it, story change. People say that he travel, others say he's sick. Till today, I didn't see that money. Thats the risk which is inside.

Therefore for me, I have just been with them off and on for like five years now. Anytime I have a steady shop, I do join it. Anytime I do freelance or remote business, I'll pause.

The truth is that, the longer you are with them, the more you will understand their character. Some collectors are very reliable, others are pure scam.

No I can't, because this one is a serious problem and a personal choice. However If i have a very good personal collector which is really trustworthy, i can recommend to my friends. But if I am not sure, I won't carry person to fall inside trap. I remember one woman which i recommend to my collector. The man was honest, so she enjoy it. But another time, I recommend a person to a different collector, and the man disappear with the money. Till today, the woman still angry with me.

So recommendation is a matter of trust. If you can't vouch for the collector like he's your blood brother, don't recommend.

I don't think so, because it has two sides. On one hand, yes, because it help people to save money without stress. Many small business owners don't have bank account or they fear bank charges. Daily contribution do encourage discipline. You will be dropping small money every day, and before you know it, you gathered a big sum.

On the other hand, no, because it doesn't has legal backing. If issues happen, you no can't arry collector and go to court. It's pure trust moment. So every business owner need to weigh the risk. If you have a reliable collector, it's fine. If you are not sure, better use a bank or cooperative society.

This my biggest fear. Imagine that you have contribute for three months, then the collector suddenly die. No written agreement, no receipt which bank recognize. What will you do? Some people will rush to meet the family, demand their money. Others will just accept that the money has vanish.

In real life, many collectors do pass their book to their children or relatives. If the family is honest, they will pay contributors. But if they don't care, that's a loss. That's why many people do fear daily contribution.

Daily contribution collectors is part of hustle. It really help people to save, it's encourage discipline, but they are also risky. My advice is : shine your eye. Know your collector very well, don't just jump in because everybody are doing it. And if you join, don't put all your money there. Balance it with bank or cooperative.

Cc:
@steem4nigeria