by admin | Apr 4, 2018 | Creating a Credit Policy, Extending Business Credit & Commercial Collections
Creating a Credit Policy: Rewards 11. Make your rewards known. This gets back to “negotiate” if you have a payment policy that rewards your customers, make sure it is known, and that this is treated like a tool you use to build that customer relationship. Your credit...
by admin | Mar 28, 2018 | Creating a Credit Policy, Extending Business Credit & Commercial Collections
Creating a Credit Policy – Early Payment: 10. Are you going to reward Early Payment? The cost of capital is real, and good behavior from clients and customers is often rewarded. Decide early, are you going to reward those that pay early with favorable terms? One...
by admin | Mar 21, 2018 | Commercial Collection Series, Creating a Credit Policy
9. Decide “in advance” what penalties and late fees will look like. Credit terms are the carrot that drives the business.Penalties, late fees, and interests are the stick that drives conformance to your credit terms. Your business has a very real expense in the...
by admin | Mar 14, 2018 | Commercial Collection Series, Creating a Credit Policy
8. Employees that work with customers/clients need to fully understand the credit policy. The last thing you need is mixed messages and a breakdown of expectations. Employee training on your credit policy is a must, both to use your credit policy for a tactical...
by admin | Mar 7, 2018 | Commercial Collection Series, Creating a Credit Policy
7. Use credit terms to your tactical advantage. Nothing beats the negotiations! Use your credit terms to help further your business objectives by leveraging credit terms to increase sales volume, or to get a deal away from a competitor. Offering terms, without...
by admin | Feb 28, 2018 | Commercial Collection Series, Creating a Credit Policy
6. Your Credit Policy Needs to be Visible and Known. There are few things worse than an ambiguous credit policy and trying to defend it in court. One thing that is worse than defending an ambiguous credit policy, is trying to defend a well-articulated policy that no...
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