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

QUESTION:

I have a client that I do billing for and a number of their clients are delinquent or slow payers. My client won't give potential customers credit applications because they are certain it will be harder to "make a sale".
They will not budge on this policy.

What should be expected of me since the list below is not an option? They at least have new customers pay a 25% deposit and they encourage credit card use, which is not a guarantee for a number of reasons when it comes to a poor payer.

EASY CREDIT POLICY STEPS

1.    Print out or buy Credit Applications
2.    Put them in a clip board by your front desk or door
3.    Have every new customer fill one out.
4.    Mail one to every existing customer, with a stamped addressed
envelope.
5.    Check ALL references- personal, employment & bank
6.    email me with any questions michelle@michelledunn.com

ANSWER:

If they won't check credit that means they are selling to people who won't be able to pay or if they don't want to, really don't have to.

The only thing you can do is stay on top of the A/R and since the economy is in a crisis, you should end up with a lot of work trying to collect which is good news for you because you will have job security.

If your client is interested in educating themselves on this there are books that explain how much money they are really losing and how having a policy or checking credit can help them to have more money.

Good luck!