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

I was just reading a book called The Renegade Writer, a totally Unconventional Guide to Freelance Writing Success, which has nothing to do with a Business Credit policy.  When I got to chapter 8, "Don't be shy when it comes time to collect" I had to share it with you here.

My point being that every business venture has the issue of having to get paid, this might entail setting up some type of policy, it could be simple or go into great detail.

As a writer I know MANY authors who fall into the trap of not being paid and not knowing what to do about it, or not wanting to call or send a letter for fear of alienating the publication or person who owes them the money.

EVERY business needs to address this issue and make sure they get paid, do not work for free!  In this book Linda Formichelli and Diana Burrell explain how when an editor or publisher tells you a check is in the mail, don't just thank them and hang up to then go on to obsessively check your mailbox every day for the check.  ASK for a check numer, and the date of the check BEFORE hanging up!

If your calls and letters are being ignored go to someone else and ask why they aren't paying you, ask them if they were happy with your work but let them know you won't be able to write for them because of the non-payments. This works great if you take your editor out to lunch or for coffee and mention how hard it is to get paid from their publication.  Editors will be embarrassed and can help you get paid.

You then need to think about if you even want to work for a publication that is not paying you, or ignoring your calls, move on.  Do not work for free!

The biggest advice I can give someone who is not getting paid, wether your an author, writer, street sweeper, babysitter or house cleaner - SEND AN INVOICE!

Some people think if they signed a contract, then did the work, they will just get paid. It doesn't work out that way, be SURE to send an invoice in every instance!

Good luck!