Tags |
|
|
Links |
|
|
Member You - How To Decide On Giving Credit To Your Customer
Product First Service Next:We understand that business primarily mean production of marketable commodities. Secondarily, we construe that business is service to maintain these products in good condition by repairs and services.Gets Life Extension:We aim to keep our products intact for a reasonable period by repairing the break down condition. The product under repair may be a baby toy, kitchen machine or a household article. This could be machinery related to any field like agriculture, eng
* 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
It would be so nice if when you got your medical billing software, if it would at least wait until you started to use it before it gave you problems. Unfortunately, many of your most common problems involve the actual installation and running of the software itself. Sometimes just trying to get the welcome screen to show up is a major challenge. In this installment, we're going to cover the most common installation and operational problems and offer some tips for solving.The first problem people run into is that the
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
Procurement refers to the acquisition of goods or commodities by an individual, organization, company, or institution. Most companies have a procurement process in place on a contractual basis. The majority of these contracts specify the lease and time for which these companies will work for a particular client. They are a great assistance to associations that cannot set up their own e-procurement services without delay.A procurement contract is suitable when the primary intention of the transaction is the acquisition
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
In this installment of medical billing and your DME software, we're going to take a look at customized reports. This is an area that most billing companies have a lot of problems with because it involves a little bit of programming and creativity. Hopefully, this review will give you a few tips on how to get the most out of your customized reports.It's great to be able to bill your patients and let's face it, that's where the money comes from. But how are you going to know how much money you've made and how profitab
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
Many small business owners like us have a difficult time asking for business. It's not that we don't want the business, but wouldn't it be so nice if people just handed over their money for our product or service rather than our actually having to ask them for it?And this is one of the most common ways that small businesses stay really, really small, and sometimes peeter out altogether. They don't ask for the business, or they don't ask for it often enough to create a successful and sustainable business.Here are
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
"Business opportunities are like buses, there's always another one coming." - Richard Branson, founder of Virgin EnterprisesIf business opportunities are like bus, then be sure that there will be many who will want to board the buses. They will also face the eternal question ‘What next’? The next step is to choose the type of business. The choices are many and the decision, well, as usual, always difficult to make. Before opting for any type of business, it will augur well, if you understand the difference between ea
* 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 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.memberyou.net/article/4013/memberyou-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.memberyou.net/article/4013/memberyou-How-To-Decide-On-Giving-Credit-To-Your-Customer.html]How To Decide On Giving Credit To Your Customer[/url]
Related Articles:
Online Moving Estimate for Moving in New York
Electroplating & Anodizing Services in Southern California
Office Supplies and Client Relation
Bookmark it:
|