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

If you have past due customers and they are ignoring your letters and phone calls, what should your next step be? 

 You may want to take them to small claims court, depending on the amount of money overdue, if they have a job or assets and if it is worth your while.

Taking someone to small claims court can be time consuming.  Depending on a few different factors, this may or may not be the route you want to take.

If the over due balance is less than $100.00 you have to decide if you want to spend the time and up-front money to file.  You pay the filing costs but if you win a judgement, they will be added to the judgement amount along with interest.

Does the customer have the money to pay you, or a job, a car, or bank account?  If they do not own anything, or have a job or money, you may be able to obtain a judgement, but then will still have to fight for payment.

You can also turn an account like this over to a debt collection agency to handle before trying court.  Sometimes they can get your money for you without having to take the customer to court.

Each situation has to be looked at individually.