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.

Share
This entry was posted in Business Credit, Checking credit, Collection Tools, Collections for Creditors, Credit Policy Questions, Credit reports, Customer Service, Economic Crisis, FAQ's, Getting Paid - Michelle Dunn - Business Finance Columni and tagged , , , , , , . Bookmark the permalink.

Leave a Reply