Giving credit to customers is a very important sales tool for most businesses.
But knowing how to offer credit effectively is the key factor that determines whether a business will succeed and grow or accumulate bad debt and suffer.
Old school credit policies were based on a hand shake. Unfortunately, hand shakes are unenforceable in court. That’s why a written credit application and a written credit policy are keys to your business success.
Key items in a credit policy are:
- Have a properly drafted credit application form and get it signed.
- Check the references on the credit application form and get a credit report from CINCB.
- If the debtor stops paying for more than 90 days, call CINCB right away to get help!
Make no mistake. The older a debt gets, the harder it is to collect and the less money you will get back.
For free helpful information on drafting a Credit Policy and a Credit Application, click here.
Have questions? Call us today to speak with one of our experienced and professional agents for debt collection and credit reporting services.