Commercial Collections Blog

To be sure your company has a clear credit policy, there are a number of steps you can take. First, you should have written credit policies and a standard document for credit agreements and credit applications. Contracts, invoices and followup letters should be clearly defined and policy manuals should outline the guidelines for assessing credit risks. Methods for collections should be clear for the customer and timetables for collection set out. As a backup, your company should also have an established relationship with a good, bonded commercial collection agency. Finally, as a last resort, there should be well defined criteria for making decisions about when to further pursue or write off a delinquent account. Taking steps to be clear will optimize the credit relationship with your customers and improve your chances of being paid in a timely fashion.

Technorati Tags the bottom line