If your business extends or offers credit you will want to really take steps to minimize your exposure to high-risk debt in the coming months. You may have noticed that many banks and lenders have much stricter guidelines for applying and being approved for credit lines.
Bankruptcies are expected to soar in the coming year and with revolving credit becoming something that is much harder to obtain, cash is king.
Some things to remember as you tighten your credit policy belt:
- Be clear on the terms of your deal, get it in writing!
- If credit is extended, WATCH the accounts, keep them up to date.
- Have a penalty for past due balances, such as a late fee, or terminating the privilege of credit.
- Research collection agencies now, so when or if you have a problem, you know which agency will work the best for you and your company.
- Have every customer sign a credit application and check their credit!!!
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