Business Credit and Collections Lessons
Understand your risk, can you afford it?
Do you have enough sales to support the extension of credit, or is your business still “hand to mouth?” Are you extending credit on big-ticket items that will disproportionately impact your cash flow or risk? What are your own payment terms to your vendors? How bad will it hurt if a debtor defaults and you end up taking them to collections? We have seen instances of small businesses expanding their business with a few large sales on credit, where an otherwise thriving business has been brought to its need by the default of only one new, but large account. You must understand your financial position and your own risk in extending credit before extending credit to others.
We have seen instances of small businesses expanding their business with a few large sales on credit, where an otherwise thriving business has been brought to its need by the default of only one new, but large account. You must understand your financial position and your own risk in extending credit before extending credit to others. Unfortunately, there is no sure-fire way to be immune to an account going into receivables. When this happens, make sure to enlist the help of a commercial debt collection agency. Commercial Receivers Incorporated is the lowest-cost commercial debt collection agency in the industry. Our incredibly low rates combined with our large amount of success stories makes us the best choice around. Contact us today to get back more of what is owed to you.
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