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

The most important point to remember is that hough collection or dunning  letters are effective and will help you collect more money, they need to be used in conjunction with your credit policy. Personal visits and/or phone calls should be an important part of your collection process. 

Each letter should be on your company letterhead and include your company name, address, phone and fax, web address, email and any other contact information.

The letters that get the best results are not “form” letters. If a letter looks like a form letter it loses some of its punch. Be sure to type your name and sign each letter if possible. You can purchase a rubber stamp of your signature, so anyone can stamp the letters for you. You can also use a different font in some word processing programs that look like a signature; this works as well.