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

High gas prices, rising unemployment, and a bad economy have made it tougher for people to pay their bills and live week to week.

I recently read an article “A bad economy can mean a boost in business for some” by Cosby Woodruff.  Woodruff states that when times are like this, the number of past due accounts are up but it is harder to collect on them.  This is very true. 

Woodruff goes on to say that when money is really tight, many companies don’t go through the debt-collection process.  I was surprised by this statement since this is one of the major ways a business can increase it’s bottom line, in times like this.

What are you doing to increase your bottom line as the economy struggles?

Are you collecting on your past due accounts or outsourcing them to someone to collect for you?