1. No credit policy in place.
When you started your business you had a business plan and you use a marketing plan to publicize your business. Do yourself a favor and create a credit policy so you can have a financial plan. “Become the Squeaky Wheel?by Michelle Dunn gives you the tools you need to create a credit policy.
2. Extending Credit to anyone.
When you go to buy a new riding lawnmower, or washer and dryer and can’t afford to pay all at once, you always have to fill out paperwork. Are you extending credit to customers without having them sign or fill out a credit application? Download a free credit application at www.credit-and-collections.com or order “How to Help you Get Paid?by Michelle Dunn for more sample applications.
3. Not using a Credit Policy to make more Money & more Sales.
When you don’t have a credit policy in place, you will probably have a lot of customers, but how many are paying in full and on time and how many are placing repeat or large orders? When you implement a credit policy, you create a solid customer base of good paying customers with credit limits that allow them to make larger and more frequent purchases.
4. Receiving too many NSF or Bad Checks
Are you getting checks returned to you for NSF? Do you accept checks from any customer and without verifying their information or checking ID? Accepting a check as a form of payment is a privilege you extend to your customer based on the unspoken promise that there are sufficient funds to cover the check.
Now look at your business with an unbiased eye. Do you have customers that owe you money? Do you have a credit policy in place? Do you want to get paid in full and on time and make more sales and money? Creating a credit policy can be as easy as having a filled out and signed credit application.
Michelle Dunn has over 17 years experience in credit and debt collection. She is the founder of Never Dunn Publishing, LLC, is a writer, consultant and the Editorial Advisor for Eli Financial Debt Collection Compliance Alert Newsletter. Michelle started M.A.D. Collection Agency and ran is successfully for 8 years. She also owns and runs http://www.Credit-and-Collections.com an online community for credit and business professionals.
She has written 5 books in her Collecting Money Series and is writing the Ultimate Book of Credit & Collections for Entrepreneur Press. Visit http://www.michelledunn.com or http://www.credit-and-collections.com for more information on any of Michelle’s books or services.