Credit Solutions professionals expect a rise in corporate insolvency. Banks are now dealing with more businesses under stress. Banks don't have the resources or time to help businesses in stress. However, suppliers' credit is readily available. Late payment culture is a clear consequence of turbulent times.
Customers don't have to know your credit policy. Although there are established trade practices in all industries, it is important that you reiterate your credit policy. Don't be ashamed to ask for payment when it's due. You can also get help from CPE Guide to pick necessary courses from our curated course library to fulfill your credit requirements.
Credit records should be kept current
Companies' affairs are not static. Changes in market conditions can quickly alter the company's conduct and health. Do not be surprised by the credit situation of your customer.
In times of concern, tighten collection procedures
It's time for you to tighten your credit control procedures if business conditions are as uncertain today. Revisions to your collection letters are a good place to start. This will make them more persuasive and stronger. Call your customers and arrange personal visits if necessary. Companies owe money but people pay the bills.
Avoid extended payment terms
To ensure that extended payment terms are not requested, it is important to screen them carefully. Too many terms can cause cash flow problems and create undesirable precedents in your account relationships.
Try to resolve disputes quickly
A dispute about the quality, delivery, price, or quantity of the merchandise or services that are the reason for nonpayment should be resolved quickly. A minor dispute may be used by the customer to withhold a large payment. You should insist that the amount not in dispute be paid immediately. This will indicate that negotiations are underway for the balance.