Tags |
|
|
Links |
|
|
Answer Upon - How To Decide On Giving Credit To Your Customer
Based on a research, the need for technical workers in America continues to increase despite the fact that many U.S companies today are resorting to the various outsourcing companies worldwide. The Association for Computing Machinery gave out last Thursday the result of its study regarding such matter. It further stated that the services provided by foreign countries such as China and India do not really pose any serious threat towards technical workers living in the U.S.The research calculated that Information techno
3. Credit is based on your business relationship, in other words, how much do you trust the other business?
Use the completed Credit Application to ask yourself some qualifying questions:
* Have they been Cash On Demand (COD) for a while, and now you look over their history, and feel you could try them at Net Amount due in 15 days (NET 15)?
* Are they brand new to you, but been in business for a few years, and their credit references speak highly of them?
* You feel comfortab
"Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion." Jack WelchVision is the first critical element in business success. Vision gives a clear picture of what you intend your business to accomplish. Without vision, you simply don't know where you're going. Hard work and perseverance cannot replace a clear vision.It is something like the experience I had at a wilderness camp in the Canadian Rockies. About twenty of us were blind
Here are 3 ways to help in the decision process, and help minimize the risk of extending credit.
1. Evaluate the risk factors of each payment type, and decide on which level of risk you are comfortable with.
Cash: zero risk (unless you forget to check for counterfeit bills).
Credit Cards: fairly safe, the risk is on the credit card company, as long as you follow the procedures of checking the signature & expiration dates. There is a possibility of a charge back, but you will be able to provide proof of a legitimate sale to resolve that. Sales over the phone or internet are a different story, the risk is of a stolen credit card, or a fraudulent card obtained by identity theft.
See the section on Scams & Frauds in “Get Your Money EZ, A Business Owner’s Guide to Collecting Their Receivables”, for more information, and ways to protect yourself and your business. (link information is provided below).
Checks: they are riskier than credit cards, because the check could prove to be NSF – non-sufficient funds, and YOU not the bank will be out the money.
Credit Accounts: they are the highest risk, especially because of the time factor, you may not realize you won’t be paid for 30, 60, 90, or longer days!
2. Always use a signed Credit Application, and Credit Agreement.
Your credit application has to perform several functions:
* Use it to get all the information you need to make your “credit worthy” decision (this same information is needed if you have to chase them for a bad debt).
* Use it to let them know in plain English what their requirements will be, and what your credit policies are.
* Use it to protect you for requirements under the law.
3. Credit is based on your business relationship, in other words, how much do you trust the other business?
Use the completed Credit Application to ask yourself some qualifying questions:
* Have they been Cash On Demand (COD) for a while, and now you look over their history, and feel you could try them at Net Amount due in 15 days (NET 15)?
* Are they brand new to you, but been in business for a few years, and their credit references speak highly of them?
* You feel comfortabl
Bound documents last longer than unbound documents. Modern binding processes are done mostly with machines rather than manually, to ensure efficiency and low time consumption. Binding machines have manual punch and electric punch. Manual punch is usually used for small- and medium-volume jobs, whereas the electric punch is used for medium- and large-volume jobs. There are various types of electric binding machines, such as wire binding, book binding, coil binding and many others.Presentation effect, production speed,
Cash: zero risk (unless you forget to check for counterfeit bills).
Credit Cards: fairly safe, the risk is on the credit card company, as long as you follow the procedures of checking the signature & expiration dates. There is a possibility of a charge back, but you will be able to provide proof of a legitimate sale to resolve that. Sales over the phone or internet are a different story, the risk is of a stolen credit card, or a fraudulent card obtained by identity theft.
See the section on Scams & Frauds in “Get Your Money EZ, A Business Owner’s Guide to Collecting Their Receivables”, for more information, and ways to protect yourself and your business. (link information is provided below).
Checks: they are riskier than credit cards, because the check could prove to be NSF – non-sufficient funds, and YOU not the bank will be out the money.
Credit Accounts: they are the highest risk, especially because of the time factor, you may not realize you won’t be paid for 30, 60, 90, or longer days!
2. Always use a signed Credit Application, and Credit Agreement.
Your credit application has to perform several functions:
* Use it to get all the information you need to make your “credit worthy” decision (this same information is needed if you have to chase them for a bad debt).
* Use it to let them know in plain English what their requirements will be, and what your credit policies are.
* Use it to protect you for requirements under the law.
3. Credit is based on your business relationship, in other words, how much do you trust the other business?
Use the completed Credit Application to ask yourself some qualifying questions:
* Have they been Cash On Demand (COD) for a while, and now you look over their history, and feel you could try them at Net Amount due in 15 days (NET 15)?
* Are they brand new to you, but been in business for a few years, and their credit references speak highly of them?
* You feel comfortab
Marketing Numbers UKMarketing numbers, already prolific in the United States, are quickly gaining popularity in the UK. They are emerging as a powerful business tool that many organisations should not be without. These are special telephone numbers which may be used to eliminate geographical barriers, generate revenue and strengthen brand presence.The major advantage for businesses of marketing numbers is that they are generally supplied with powerful number translation services such as voice and fax to email, t
See the section on Scams & Frauds in “Get Your Money EZ, A Business Owner’s Guide to Collecting Their Receivables”, for more information, and ways to protect yourself and your business. (link information is provided below).
Checks: they are riskier than credit cards, because the check could prove to be NSF – non-sufficient funds, and YOU not the bank will be out the money.
Credit Accounts: they are the highest risk, especially because of the time factor, you may not realize you won’t be paid for 30, 60, 90, or longer days!
2. Always use a signed Credit Application, and Credit Agreement.
Your credit application has to perform several functions:
* Use it to get all the information you need to make your “credit worthy” decision (this same information is needed if you have to chase them for a bad debt).
* Use it to let them know in plain English what their requirements will be, and what your credit policies are.
* Use it to protect you for requirements under the law.
3. Credit is based on your business relationship, in other words, how much do you trust the other business?
Use the completed Credit Application to ask yourself some qualifying questions:
* Have they been Cash On Demand (COD) for a while, and now you look over their history, and feel you could try them at Net Amount due in 15 days (NET 15)?
* Are they brand new to you, but been in business for a few years, and their credit references speak highly of them?
* You feel comfortab
Have you ever wondered why some business owners seem so calm and steady, while others are in a constant state of worry and panic?Surprisingly, the difference between these two scenarios has nothing to do with the operation of the business-it is the vision of the owner.Your vision for your business provides the foundation for its success, or failure.Without a strong vision, your business will be buffeted by the winds and storms of life, and end up either precariously perched, or crashing down.So, ho
2. Always use a signed Credit Application, and Credit Agreement.
Your credit application has to perform several functions:
* Use it to get all the information you need to make your “credit worthy” decision (this same information is needed if you have to chase them for a bad debt).
* Use it to let them know in plain English what their requirements will be, and what your credit policies are.
* Use it to protect you for requirements under the law.
3. Credit is based on your business relationship, in other words, how much do you trust the other business?
Use the completed Credit Application to ask yourself some qualifying questions:
* Have they been Cash On Demand (COD) for a while, and now you look over their history, and feel you could try them at Net Amount due in 15 days (NET 15)?
* Are they brand new to you, but been in business for a few years, and their credit references speak highly of them?
* You feel comfortab
Interestingly enough the majority of people who ask me whether their sales letter is too long have missed the boat somewhat.You see, their mind is focused on the length of their sales letter rather than the job the sales letter has to do, and when they do that it is impossible to write in a manner that will convince the reader to take action and buy their product.No, your main focus when writing a sales letter must be on the job it has to do and that, in a nutshell, is to convince the reader that he or she needs
3. Credit is based on your business relationship, in other words, how much do you trust the other business?
Use the completed Credit Application to ask yourself some qualifying questions:
* Have they been Cash On Demand (COD) for a while, and now you look over their history, and feel you could try them at Net Amount due in 15 days (NET 15)?
* Are they brand new to you, but been in business for a few years, and their credit references speak highly of them?
* You feel comfortable based on their credit check, to extend credit to them, especially because you have tight policy & procedures in place?
* They don’t show any of the “Dead Beat” red flags?
Note: a complete listing of the “dead beat” red flags is in chapter 3 of “Get Your Money EZ, A Business Owner’s Guide To Collecting Receivables” (see the link information below).
Unfortunately, there are no exact and safe rules to follow in granting credit and creating receivables that must be collected from your customers. You will always be balancing the risk of not being paid against the benefit of more business. As mentioned above, Policy’s and Procedures in place and followed every time are extremely important in the credit process. They are the structure of your business, and save you not only time, but unnecessary risk. There are special bonus chapters in the book with examples of a Credit Application and a Credit Agreement. The book also goes into more detail of tools to use to decide to extend credit.
So to recap the steps, you are going to:
* Have them fill out and sign a Credit Application and Credit Agreement.
* Use them to evaluate your business relationship (read trustworthness here) of how they have done business with you in the past.
* Decide on the level of trust (none- they will be cash only), (some – they can have 15 days before you come hounding them), or (quite a bit of trust – they can have the benefit of the merchandise or service for 30 days before paying).
I would encourage you also to trust your “gut feelings” along with the steps above. Good luck, and may you prosper in your business!
HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.hubyou.info/article/4013/hubyou-How-To-Decide-On-Giving-Credit-To-Your-Customer.html">How To Decide On Giving Credit To Your Customer</a>
BB link (for phorums):
[url=http://www.hubyou.info/article/4013/hubyou-How-To-Decide-On-Giving-Credit-To-Your-Customer.html]How To Decide On Giving Credit To Your Customer[/url]
Related Articles:
Is IP The Most Cost Effective Choice For Your Business Communication Applications?
The Right Barcode Label Material
Bookmark it:
|