Creditprousa's Blog

April 27, 2010

A STRONG CREDIT POLICY IN A WEAK ECONOMY

The weaker the economy, the stronger your credit policy must be.  You’ve probably heard the saying  “…a sale is not a sale, unless it’s paid for…it’s a gift.  This couldn’t be truer today given our tough economic climate.  Desperation to make a “sale” oftentimes interferes with making the right decision to either deny credit and insist on COD terms or in the alternative getting a large down payment to minimize the amount of credit extended to the prospective customer.

To substantially reduce the potential that you will not be paid for your product or service as a result of extending credit, you truly need to take some preliminary and necessary steps.  First, if you believe you want to extend credit, you need a good credit application that not only provides some detailed information about your prospective customer, but also contains language that will bind that customer to your payment terms with his/her signature.  Second, you must thoroughly investigate the information provided by the prospective customer on the credit application.  Only after you have obtained complete information from your prospective customer and have investigated and verified it, can you then make an informed decision to either extend or deny credit to them.

Having said all of this, and although these are steps in the right direction, if you don’t possess the training or knowledge that are necessary to make an educated decision based upon the information you have been provided by the prospective customer, your exposure to non-payment could still be substantial.   Consultation with an experienced credit professional to assist you in making the correct decision is highly recommended.   CreditPro Financial Services, LLC, employs skilled and knowledgeable credit management professionals from varied industries to help you.  In addition to its many other products, CreditPro Financial Services, LLC can provide you with proven credit applications and guaranty instruments for your use. Once you have obtained the desired information from your prospective customer, CreditPro Financial Services, LLC can investigate and verify that information, evaluate their credit-worthiness and recommend the extension or denial of credit on a case-by-case, as needed basis, thereby eliminating the need to enlist the services of a full-time credit manager or credit department.    Make your company more profitable by properly extending credit through the use of the proven products and services provided by CreditPro Financial Services, LLC.  Please call 216.402.9988 or visit us on our website, www.creditprousa.com for more information.

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