What to look for when extending Credit

When you extend credit, you are opening yourself up for risk.  When you do offer credit, you must make some assumptions:

  • That your customer will pay you and has every intention of paying you even after they leave your store or office.
  • That they are able to pay you, and not in over their heads with other bills and not enough income.
  • That they won’t lose their job and be unable to pay you.
  • That your judgment and research on their credit history is accurate.

BE CAREFUL WHEN EXTENDING CREDIT – you are putting YOUR business on the line.

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