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

You know the NIKE slogan, “Just do it!”  Well, now is the time for business owners to “Just do it” on any accounts that have a balance due.

Now is the time to collect that money, otherwise your chances of collecting it are flying out the window.

Here are 10 things you can do to improve your collections this week:

1. Print out your entire A/R listing
2. Make phone calls to every accounts, if that is to much call the accounts with the larger balances.
3. Leave a message if you don’t get in contact with the person who can mail a check.
4. Send a follow up letter (even a form letter) if you leave a message.
5. Send a follow up letter reiterating anything you talked about with the person mailing the check.
6. If possible send those letters in a flat rate priority mail envelope with return receipt requested or signature required.
7. Include a self addressed (maybe stamped if you can) envelope with each letter.
8. Call each account back 4 days after mailing those letters.
9. Re-evaluate all your customers credit terms.
10. Pick up your mail and deposit the payments to immediately reflect on your bottom line.