How to Prevent Late Payments from Customers
Run a credit check, if appropriate given the type of business transaction and the dollar volume involved., Ask for and contact business references to find out what others think of the business dealings they've had with the prospective customer...
Step-by-Step Guide
-
Step 1: Run a credit check
It may not be worth the risk to enter into a business arrangement with a prospective customer who has already established a poor credit history. -
Step 2: if appropriate given the type of business transaction and the dollar volume involved.
,, The limit could be based on the quality of their existing credit or their monthly, quarterly, or annual sales volume.
Credit limits can always be raised later if the customer develops a history of prompt payments with you. -
Step 3: Ask for and contact business references to find out what others think of the business dealings they've had with the prospective customer.
-
Step 4: Ask for a reasonable down payment from new customers before providing goods or services.
-
Step 5: Establish a credit limit at the beginning of the relationship with a new client.
Detailed Guide
It may not be worth the risk to enter into a business arrangement with a prospective customer who has already established a poor credit history.
,, The limit could be based on the quality of their existing credit or their monthly, quarterly, or annual sales volume.
Credit limits can always be raised later if the customer develops a history of prompt payments with you.
About the Author
Samuel Rogers
Professional writer focused on creating easy-to-follow practical skills tutorials.
Rate This Guide
How helpful was this guide? Click to rate: