Strong Solutions For Credit Problems

Even the best of customers sometimes fall past-due.  You should have an established credit policy so you can handle these problems when they occur.  Here are some typical solutions.

1.  Ship C.O.D. only.

2.  Get a personal guarantee of payment from a company officer.

3.  Shut off a customers’ credit until all back bills are paid in full.

It’s just as important to watch for signs that customers’ credit might be weakening. Here are some typical signs.

  •  Sudden increase in purchases
  •  Frequent changes to new banks
  •  Weak excuses for payment slowdown
  •  Reluctance to reveal financial information
  •  Annoyance at attempts to collect
  •  Factoring of accounts receivable
  •  Lowered credit agency rating
  •  Erratic pattern of payments
  •  Unresponsiveness to collection attempts