In these tougher economic times, collection of your Accounts Receivable needs monitored more closely. The credit worthiness of your clients has probably degraded and their ability to pay you may be at risk.
There is only one thing worse than no sales and that is delivering the goods and not getting paid 🙁
What steps can be taken to protect your business from credit default or slow pay risk? Let’s look at a few:
- Credit application on File?
- “Legalese” on the back of your Invoice?
- Interest on Late Payments?
- Security Interest in Goods?
- Lien Rights if Applicable?
- Personal Guarantee of Customer?
- Limited Return Policy?
- Insure your Accountants Receivable?
- Sell Your Accounts Receivable?
- Current Credit Data on Your Clients?
- Cross Collateral Protection?
Many of the points are self-explanatory, but if you are worried about the collectability of your Accounts Receivable, please comment on this post and we will try to send you in the right direction for help. You may also contact us here.