Our CEO, Larry Chester was recently featured on CEO World Magazine discussing how to handle credit as a business owner. See a preview of Larry’s article below:
Early-stage companies are glad just to get orders for their products. They see every prospect as a link in the chain that brings them ultimate success. It usually takes them a few bites into a rotten apple before they realize that one of the standards that they need to set is a credit policy that provides them with reliable customers that will end up paying their bills. Larger, well-established companies developed solid credit policies as part of their standard operating procedures. Someone wants to do business with you, they submit to a credit check. When you are comfortable that they’re able to pay your invoices, you give them a credit line, allowing them to buy your products or services.
In spite of solid credit policies, companies still get blindsided by customers that fail to pay their bills. Every company that looks at their business strategically, plans on a certain amount of bad debt. Nobody wants bad debt, but the reality that some bills aren’t going to get paid is part of good business planning. But the key is to do what you can to provide a fence around your receivables to reduce, if not totally eliminate write-offs. But not every risk is something that you can preplan for…
Read the remainder of the article at CEO World Magazine to find out how you can get started with your business’ credit policy:
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