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  Account Credit Performance
Newsletter December 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
Improving Your Credit and Collection Policies

Monitoring your company's credit performance is crucial to maintaining your business' growth potential, especially during these turbulent economic times. Here are some tips in identifying possible risks and maximizing profit.

First, develop a consistent customer invoicing system. Bills should be sent out on the same day of every month. A prompt and systemized billing procedure is essential to improving your accounts receivable.

Next, you must set up clear and concise terms of payment and enforce these terms. If an invoice is not paid as per the terms set, action must take place such as sending a follow up invoice within 15-30 days after the first invoice was sent. Your business relies on payment for work done. Offer your customers payment alternatives such as: cash on delivery (C.O.D.), debit or credit card payment, bank checks, or by electronic fund transfers (EFT) for credit card payments. Consider putting credit limits based on payment history and do not let more than two deliveries or shipments be made without payment.

Establishing and managing a systemized collection process ensures that your business will continue to grow. Focus on good service, consistent billing practices and follow-up calls. Take charge of the situation, don't let your customers control your credit and collection processes.

 
 


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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