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.