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

Friday Congress passed a $170 billion economic stimulus bill and President Bush is expected to quickly make a final approval to the bill, which will give out rebate checks of $300-$1200 to many tax-filing Americans. 

How will this affect your accounts receivables and your customers? Will they use this rebate to pay off any money they owe you or to buy your services or products?  Can you offer a “Rebate check Sale” to try and add some of that money to your bottom line?

Can you figure out which of your past due customers might receive a rebate check and convince them to pay off their bill with your company with that money?

House Speaker Nancy Pelosi told colleagues that “We believe the stimulus, the way it is targeted, will put money into the hands of those who will spend it immediately, injecting demand into the economy and therefore creating jobs.” 

Hopefully, this is what will happen.  When we researched and did some polls asking people who may be receiving the rebate checks what they would do with the extra money, most said buy groceries and pay off bills.  Unfortunately, this will not stimulate the economy or create more jobs, so I guess we will wait and see if this plan will really work.  In the meantime, see what you can do to get the bills people want to pay off to be a bill they owe your company!