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

You know you cringe when a credit report comes back negative and you have to tell your customer they are not approved. Not a fun job. So what do you say to kindly decline them the opportunity to have credit with your company? 

It seems the wholesale building trades know how to handle it thus protecting their business. 

Learn how they regretfully inform their customer that credit cannot be extended after much research.  This is a very important step that every business should take but many don’t.  Do not feel bad when you turn down a customer, replace them with a credit approved customer and make some money.  It is not your fault someone is credit denied, though it is a tough job to have to pass that information along and deal with the reaction.

Remember that you are in business to make money.