If you are starting a business, you are reading this because you need to or want to create some kind of payment policy for your customers and you want some kind of guidelines for your billing practices.
Don’t just throw anything together, really look at your business. What type of business is it? Do you sell items with a large price tag that will be better off being paid for on account or over time? Do you want to be paid in full before shipping items or will you accept payment plans? Will you charge interest? Will you charge late fees?
Look at some of your vendors and see what your terms are with them, find something that will fit in with your business and keep your cash flow flowing. Don’t offer so much credit that you don’t have any money coming in.
When you are offering credit and keeping your cash flowing, you will be less stressed, happy and more successful. Offer discounts when people pay early, this gets you more of your money faster.
Are you proud of your business? Are you happy with how your cash is flowing? Most entrepreneurs are proud to start and run their own business, make sure your credit policy is one that offers you adequate cash coming in and is one that you can be proud of.
Good luck!
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