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  Credit Management
Newsletter November 2008

 
 
REV KAREN PIC

As a community service, the Law Offices of Karen M. Riggio, LLC publishes a complimentary e-newsletter designed for business owners and independent contractors. Each month, we offer valuable tips and practical, real life answers to today's common contract issues and collection problems. Feel free to e-mail us your suggestions for future articles.

Karen M. Riggio

 
 
Tip of the Month
Identify Problems Before They Materialize

Managing your accounts receivable effectively is the key to your business survival and growth. Now more than ever, how you handle your debts and slow collections has a major effect on the future of your business. Here are some tips to identify problems before they occur and improve your chances for getting paid.

Systemize your credit and collection policies.

First, review your account credit approval process, your credit performance guidelines, and how you manage delinquencies. It is essential that you establish written credit policies that can be delegated to others who will enforce these guidelines for your company.

Next, to ensure prompt payment and to make collections easier, it is very important to obtain accurate customer information including their full name, street and email address, telephone number, and if possible, employment and banking information.

Finally, I highly recommend running a credit report so that you can decide whether to accept the potential customer and if so, on what terms (COD, dollar limit, 1 delivery, or credit card or bank account information in advance). Knowing who you are dealing with and their financial status will greatly reduce your credit and collection problems.

Developing and managing a credit and collection system will resolve any potential collection issues down the road. Establish guidelines, inform your customers up front that this policy exists, and be sure that they are enforced by your staff.

 
 


Since 1983, Attorney Karen M. Riggio has helped thousands of clients create clear and concise written agreements and avoid potential business disputes. Her practice concentrates in business and commercial law, and provides experienced legal counsel in contracts, debt collection, dispute resolution, and real estate. For more information, call 203-968-8715 or visit www.kmriggio.com.


© 2008 Law Offices of Karen M. Riggio, LLC
Concentrating on Business and Commercial Law
Connecticut New York

 
 
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