There is always a risk when providing credit to a customer, but it is a risk you should be willing to take; especially if you prepare the terms correctly.
Atlanta, GA (PRWEB) May 28, 2014
C2C Resources, a commercial debt collection company, announced today that they have released a brief guide in their latest blog post to help companies effectively extend credit to customers without having the process turn into a costly profit recovery effort.
In the blog post, the company discusses how to decide if your company should provide payment terms to customers, the importance of setting a credit policy in writing and creating plans for the varying scenarios that occur when interacting with customer payment: on-time payment, early payment and delinquent payment.
“Companies who establish structured plans and guidelines for their payment terms are typically more successful in receiving on-time or early payment from their customers,” explained Todd Tinkler, President of C2C Resources. “There is always a risk when providing credit to a customer, but it is a risk you should be willing to take; especially if you prepare the terms correctly.”
While extending credit may seem like a risk, C2C Resources highlights the many benefits that companies can see by doing it, including: helping close a sale; enhancing the customer relationship; and potentially generating more sales because of the ease of doing business.
“If your accounts receivable department does their homework by verifying credit references, running past credit history and sticking to the established terms, you will receive payment from customers and reap the benefits,” said Tinkler.
Below are highlights from the released how-to guide blog post. For the full blog post and all other tips from C2C Resources, visit: http://www.c2cresourcesblog.com.
1. Set your credit policy from the beginning in writing.
2. Include the terms on your website to entice visitors to want to purchase.
3. Create a systematic plan for how customers can apply to receive credit.
4. Utilize the C2C Resources four step process for verifying credit.
5. Periodically monitor customers who have an established credit.
6. Create a plan for early, on-time and late payment.
About C2C Resources:
C2C Resources is a global Commercial Debt Collection agency headquartered in Atlanta, Georgia. The company collects commercial debt on behalf of their over 20,000 clients and is considered one of the top agencies in the country. The executive team at C2C brings more than 60 years of experience helping businesses collect their accounts receivable.
C2C’s powerful combination of Profit Maximizer, InfoMax Collection System, and Legal Forwarding Edge, can help your company be more effective with your own in-house collecting and maximize recovery of accounts turned over for collection.