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

Doing collection work is never fun, and business owners have to make their calls effective and friendly in order to maintain a relationship and get paid.  Some businesses have almost gone out of business because of a lack of cash flow that is a result of them not asking for payment that is due.

Gina Dietrich, owner of a Chicago based public relatins firm had just that happen to her.  She says she was not very good at asking for her money and had to implement a 2 month up front retainer to keep up her cash flow.

Having a contract or up front fees can help you to keep your cash flowing and cut down on the debt collection calls you have to make.  Accountingweb has a great article on this subject that they uploaded to their site today with tips to help you and your accountant keep your cash flowing and also some tips on collecting from customers in an effective and friendly manner.