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

As we struggle with our customer’s during this recession we may have to give our business credit policy a check-up.  When you wrote your credit policy, most likely the economy was thriving, now that it is struggling your credit policy should reflect those changes in order to be effective. 

Many of your customers that may have been credit approved might have lost a job or a spouse might be out of work or maybe they have lost their home.  Unfortunately for you, this will affect their credit and how they can pay you.

Make sure your policy covers what to do when someone is credit approved but then their situation changes and they are unable to pay you. Being prepared will help you to get paid and keep the customer without feeling stressed and without losing to much money.  It will also help you in the future as we continue through this struggling economic crisis.