How well do you know your customers? I bet you think you know them pretty well. If you don’t know enough about them you can end up with a pile of unpaid invoices and no idea how to recover the money they owe you or the time to do it. Don’t let this happen to you.
Credit policies are a must for every business that extends credit. Every business that doesn’t accept payment at the time of the sale must have a credit policy in place or they run the risk of losing money and sales with the end result being that they are working for free. If this gets out of control, you can end up with many customers owing you money but no money coming in, causing your business to fail. Some steps you can take to make your credit policy easy, quick and painless are:
- Make it easy for the customer to get credit with you. Have packets paper clipped together at the front desk; include the credit application, automatic payment permission forms and anything else you want filled out before opening an account.
- Make it quick, by having these packets ready and waiting for anyone who comes in. Have pens and clip boards available so they can be filled out immediately.
- Make it painless, by either having them wait and running the credit application while they are still there or responding to them within a certain time period, say 24 hours.
Customers today, like everyone else are expecting convenience and speed, If you make opening up a credit account difficult or unorganized, you could lose the customer.
Customers that are approved for credit, will buy more if they can pay later, so make the process as streamlined as you can.
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