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

The credit crunch and inflation will delay the housing recovery until at least 2009 according to a new forecast in the Boston Globe.  This is not good news for many consumers and business owners worldwide.

How can your business survive this tough economic breakdown?  If all else fails and you feel like you don’t have any options left but to file bankruptcy or close your doors, think again. 

The most important piece of advice I can give you is to print out your A/R and focus your energy into collecting that money.  You did the work or provided the service, now you need to get paid.  Increase your bottom line as soon as next Friday by following these steps.

• Print out your Accounts Receivables listing.
• Highlight anyone over 90 or 120 days.
• CALL THEM.
• Send a letter to anyone who you don’t speak to.
• Send the letter by certified mail or priority mail with signature required. 

Once you have done that focus on the accounts that are 60 days past due.

CALL THEM

 
Do this for any account that owes you money. Now is the time to be firm, things are only getting worse, the sooner you get paid the better chances you have of success. The longer you wait, the less money you will collect.  If you want your money and you want it now, make this practice your highest priority this week.