Credit Policy for businesses and how to extend credit and manage credit risk

Some business owners have had their business for months or maybe years, and when I talk to them about credit policies, credit limits, and credit applications, they say, "I never did any of that and I have so many customers that owe me money and are past due".  They always think it is to late to do anything about it, or they are afraid to ask an existing customer for the money or have them fill out a credit application.  They think they will make the customer mad and lose the business.

If someone is not paying you, why are you worried about losing that buisness? Wouldn't you rather have a customer that pays you? Maybe you like working for free.

If you have customers that owe you money right now, you can and should do something about that.  Maybe if you add up how much money is past due or not paid, the dollar amount will make you say, "Wow!" and take some action. I am going to list some action tips here that you and every business owner can take today to start making more money by collecting what is owed to them.  Don't wait! Your in business to make money aren't you?

• Go through your accounts receivable listing and find out who owes you money, how much, and how past due it is.  Print this list out or put the invoices in a pile.

• Set aside an hour a day and sit down and call those customers or have someone call for you.  For collection call tips, check out my book "Become the Squeaky Wheel".

• Create a series of dunning or collection letters to send out to the customers who are getting past due, or are 30-60 days past due and that you could not reach on the phone. Send the first letter today! If you don't get payment send the second letter in a week and so forth.  I have a series of letters you can use in my booklet "How to Help you Get Paid, Credit & Collections Forms & Letters" and also in "Become the Squeaky Wheel".

• Create a tickler file on your desk or in your computer, so that you will follow up on the accounts that don't send a check. This is VERY important. One of the main reasons business owners do not get paid is that they do not follow through. 

You work hard for your money and deserve to get paid! Don't let your customers control your cash flow. Take these steps and get paid today.  Check back here often for more tips to help you make more money and get rid of slow or non-paying customers.  I will offer you tools and tips on how to get quality, repeat, and good paying customers. With my help you can make more money right away.