Success in collecting what your customers owe you begins with a sound credit application.
Sales personnel of many companies will tell you “don’t worry about this guy – he’s good for it” and attempt to convince you that a completed application is over rated. Don’t fall for that – if the customer is really good for it, then there should be no problem getting an application completed.
Did you know that your credit application requires a clause that says your customer consents to your obtaining information and that the customer authorizes the release of any credit and financial information by any bank, trade reference, etc.?
Where possible, in addition to the application, get a signed personal guarantee to secure the debt. It is wise to Include your payment terms on the application so your customer can’t say he didn’t know what those terms were.
A proper application needs several elements , for example, a clause saying that the customer declares that the information on the application is completely accurate. Believe it or not we are shown applications that were never signed making collection so much harder of even impossible.
We would be delighted to review and help you improve your credit application forms and guarantees. Your very small investment up front will pay off well when you have a collection problem.
Contact me at firstname.lastname@example.org.