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

As more and more people across the U.S. lose their jobs and become victims of the recession, your job becomes tougher trying to collect from your customers who may have a drastically less income or no income at all.  How can you collect from someone who can barely pay their living expenses?

If someone is not working they might have credit cards they can use to tide them over until they get a job.  During this credit crisis, the advice for working folks is to STOP using their credit cards but if your customer is not working this may be an avenue that is open to them when they don’t have many other options. Once they get a job and have a regular income they can stop using their credit cards and pay them off as quickly as possible.

Do you offer a hardship program?  Now may be the time to start thinking about implementing some type of hardship program until this recession is over. 

You can also suggest they visit a reputable credit counseling service for help.