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

It is very common with businesses who don't do any planning, such as business planning, marketing planning or policy planning.

Some business owners, especially new business owners are so eager to make a sale that they don't document or discuss payment and then they don't want to offend the customer by asking for their money.

Do not let this happen to you! You are in business to MAKE MONEY! Do not work for free!

ASK for your money, remember, it is your money. Better still, outline and determine payment terms BEFORE the sale. Never extend credit to someone without having them fill out some paperwork and sign something.

I have done debt collections for 18 years, and this is the biggest, most common mistake small business owners make. The good news is, you can prevent it.  Don't let your customer get lost in the crowd before they pay you in full!