1-6-2008
What are your New Year’s Credit Resolutions?
By Paula Bartlett, Saba & Associates
What are your New Year resolutions? Well, if you have anything to do with credit or the desire to be paid for services rendered, I would recommend the following to be added to that list of changes.
  • Ask for payment at the time services are rendered. Even if you get a partial payment the psychological effects will encourage the importance you place on being paid.
  • If you utilize contracts don’t forget to have them signed by the customer.
  • If you don’t utilize contracts, start now.
  • If your business primarily caters to commercial accounts (business to business) It would be wise to include your interest rate, a personal guarantee, attorney fees and the right to have the cost of collections added in the event of delinquency.
  • If your payments are in the form of checks, debit or credit, be sure to have your staff trained to look at the photo ID. I mean look at the photo and then look at the individual. Often we will look at the ID but never look at the individual who is presenting the ID. We get checks every month placed for collections that have been stolen and still have the correct individual’s driver’s license information. Don’t be in a hurry take the time to be thorough.
  • If billing for services, decide if you are charging interest or late fees. You can’t charge both and it would be wise to consult with an attorney regarding the legalities.
  • Be thorough with the information you need to obtain to collect your money. Full names of spouses, place of employment, social security numbers, etc.
  • Billing should be done in a timely manner. Same time each month.
  • Having specific individuals in charge of the accounts receivable is always an advantage. A point of contact will discourage confusion regarding billing questions or your payment policies.
  • Don’t wait too long before using the services of professionals such as attorney or collection agencies. Remember recovering something is better than all of nothing and in many cases you can actually receive 100 percent of your money back.