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Some experts think we are in a recession while others think we are headed towards a recession. Regardless of what the experts believe, most people are experiencing some form of stress due to less money in their pockets. I know personally each time I look at the gas pump my heart begins to palpitate and I have mixed emotions of anger, disgust, and concern. But regardless, I still have to pump. Fuel prices have definitely impacted everyone.
Be prepared, if you have a business that has never extended credit you may have to start soon. And if you already have extended credit and allowed customers or patients to make payments there are a few things you may want to consider.
One of the most important precautions to take when extending credit is to be sure all your information is current and correct on the consumer. The more information you gather the more likely you will be able to collect your money. Spouse information, place of employment on both spouses, physical address not just a PO Box is important. If you are in a business where contracts are the norm, be sure to get signatures.
Now, expect your payment arrangements to begin shrinking each month because of the economy. If people don’t have much money they have to cut back and one of the first places they will cut is in their payment arrangements. $100 a month arrangements may become $75 a month arrangements. As long as the payments are made on a regular basis and the consumers or patients are communicating with you this may be something that businesses will have to adapt to for a while. Like it or not, the trickle down effect may be with us for a while.
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