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

When placing accounts with a collection agency remember that accurate information about the account will improve collections.  The more information you have, the better. Provide copies of ALL signed paperwork, such as a credit application, contract, agreement, PO, order form etc.

In all cases, the minimum information should include:

• The correct name, address & telephone number of the customer
• The name of the customers spouse
• A note telling them if mail was returned and why (MLNA, Forwarding order expired)
• Customers & customers spouse, work information, occupation, name of employer and phone numbers if available
• Names of relatives, friends, neighbors and references (on your credit application)
• Notes on any disputes or past problems
• Date of last transaction, order or payment
• Cell phone, fax, email address
• Nicknames, aliases or maiden name
• Co-operate with your collection agency. Do not expect miracles, and be patient.