debt collection consulting

 

1. Who gets what business credit terms

Let’s be smart about this, a credit policy doesn’t mean open the floodgates.   The best customers, with the greatest ability to pay should have the best terms.  New customers that have not established trust yet, perhaps not so much.

2.  Factor in the relationship

Has the customer been consistent and loyal, there’s a good candidate for whom to extend debt.  Loyalty when extending SMB debt goes a long way.

3.  Credit Reports!

The best way to know if your customer is creditworthy?  Pull the credit report.  Business have credit reports as well, there are multiple business rating services out there, however Dunn and Bradstreet has a fair bit of industry credibility.

4.  Risk Taking

Evaluate  your client’s patterns of taking credit risk, either through review of their credit rating, or based on your personal knowledge.  If the customer displays high degrees of credit risk taking,, it may not be in your best interest to extend them business credit.

 

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