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

What is your business's monthly credit plan?  Do you have a monthly credit plan? Have you ever heard of a monthly credit plan? If not, keep reading.

How do you know how much money your business needs to make a month in order to pay all of your bills, employees and expenses before you make a profit? Do you know?

Here are some simple monthly percentages you can use to determine if you need to cut back:

• Do you spend more than 35% on a mortgage, taxes, insurance, or upkeep a month for your business?
• Do you spend more than 15% on vehicle payments, such as leasing, loans, gas, insurance, maintenance?
• Do you put more than 10% into a savings or employee type accounts, such as 401K?
• Do you spend more than 15% on paying off debt, such as business credit cards or accounts?
• Do you spend more than 25% on your paycheck?