Where large corporations have failed, the small business has retained its position in our economy. There is no way to know for sure if credit and collections training is responsible for this success but it plays an important role. How you handle your cash and credit accounts can keep your business viable.
There are a number of ways that you can offer payment terms to your clientele. Naturally, it is cash that is the most desirable. Once payment is accepted there is no further responsibility on the part of either party. The transaction is completed. In today's world of finance cash can also take the form of a debit card used by patrons to transfer money from their account into yours.
There are very few businesses where the entry does not inform you that it accepts cards of various kinds. Credit card merchants can quickly and easily set you up with terminals that will electronically transfer funds from a clients account to yours. Merchants do charge a small percentage of each transaction for their services but the amount is typically quite small.
You also have the privilege of setting up your own programs. Potential account members will be expected to provide you with information needed for you to determine their worthiness when it comes time to pay. You have the right to set borrowing limits as well as the amount of interest that will charged on these accounts. Instead of a middleman making the extra money, you can do it yourself. These accounts do not come without risk because there will always be some that will default.
Every single person that you extend credit to must be willing to sign a contract. They also must be willing to give you information such as drivers license and Social Security numbers. These are both a means by which you can locate a client in arrears if they should move away from the immediate area.
This is where your collection training will come in handy. You will be aware of means you can use to collect these accounts that you would otherwise be unaware of. Keep foremost in your mind that most people are credit worthy. They do not default simply because they choose to. Something has happened to put them in this position.
Always be friendly when speaking with a client in arrears. Yet relay the message that the debt has to be paid. You can get this point across with regularly mailed statements or timely telephone calls. Let these people know that you are willing to work with them and set up a repayment schedule that fits into their present budget. Remind them that failure to pay will result in the account being turned over for collection but you prefer not to do that unless all else fails.
If you have taken the time to get the credit and collections training you will find that your business will run much smoothly. Generating a good cash flow will keep your business lucrative with the potential for future growth. Depending solely on credit collection will only reduce the amount of money you can make over any given period of time.
There are a number of ways that you can offer payment terms to your clientele. Naturally, it is cash that is the most desirable. Once payment is accepted there is no further responsibility on the part of either party. The transaction is completed. In today's world of finance cash can also take the form of a debit card used by patrons to transfer money from their account into yours.
There are very few businesses where the entry does not inform you that it accepts cards of various kinds. Credit card merchants can quickly and easily set you up with terminals that will electronically transfer funds from a clients account to yours. Merchants do charge a small percentage of each transaction for their services but the amount is typically quite small.
You also have the privilege of setting up your own programs. Potential account members will be expected to provide you with information needed for you to determine their worthiness when it comes time to pay. You have the right to set borrowing limits as well as the amount of interest that will charged on these accounts. Instead of a middleman making the extra money, you can do it yourself. These accounts do not come without risk because there will always be some that will default.
Every single person that you extend credit to must be willing to sign a contract. They also must be willing to give you information such as drivers license and Social Security numbers. These are both a means by which you can locate a client in arrears if they should move away from the immediate area.
This is where your collection training will come in handy. You will be aware of means you can use to collect these accounts that you would otherwise be unaware of. Keep foremost in your mind that most people are credit worthy. They do not default simply because they choose to. Something has happened to put them in this position.
Always be friendly when speaking with a client in arrears. Yet relay the message that the debt has to be paid. You can get this point across with regularly mailed statements or timely telephone calls. Let these people know that you are willing to work with them and set up a repayment schedule that fits into their present budget. Remind them that failure to pay will result in the account being turned over for collection but you prefer not to do that unless all else fails.
If you have taken the time to get the credit and collections training you will find that your business will run much smoothly. Generating a good cash flow will keep your business lucrative with the potential for future growth. Depending solely on credit collection will only reduce the amount of money you can make over any given period of time.
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