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

What are the steps that a company needs to take to collect money that is due to them?

If your calls or letters don't prompt payment, you can sue them in small claims court or place them for collection with a debt collection agency.

Be firm about being paid from the beginning.  If a debtor knows you are serious, they will be more likely to pay.  If they had to fill out a credit application, and/or contract or agreement, this shows them you are serious about your business and about getting paid. You do not work for free.  If you place accounts with a collection agency sooner than later, that also shows that you mean business.

Debtors will know you are serious if:

1. They had to fill out a credit application
2. They had to sign a contract
3. They receive invoices right away.