When you hire a new employee you usually have them fill out a job application, and then check their references and conduct an interview or a few interviews, in person or in the phone or sometimes both.
When you extend credit to a new customer, you should be taking some similar steps.
Extending credit is alot like hiring a new employee. You want them to fill out any information about themselves, on a credit application or job application.
You want to check their references, either by phone, fax or mail.
You want to have an interview with them either in person or by phone or both.
When you obtain a new customer that wants you to extend credit, it is so similar to hiring an employee, you need to make sure they are trustworthy, honest and can do the job, or in the case of a new custoer, pay the bill.
Some common things you do for both situations are:
- Get a filled out and signed application (job or credit)
- Check references
- Ask questions
- Follow up
Making the right decision on employees is a hard decision, and deciding who to extend credit to and how much is just as challenging. Make sure you put as much importance on extending credit as when you hire someone to work for you.
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