You don't want to crack down on a good customer too hard too soon; yet you don't want to be "taken" by a debtor who has become unable or unwilling to pay. The problem is distinguishing between slow payers and no-payers.
What you need is an early warning system to detect a credit
problem in the making so you can stop additional sales to that customer and
begin collection procedures in earnest. Here are some telltale signs of an
account that is turning sour.
●
The debtor has begun paying erratically,
settling up on smaller invoices while larger ones get older.
●
The debtor fails to return your phone calls or
shows unusual annoyance at your inquiries.
●
Your requests for information, such as updated
financial statements, are ignored.
●
The debtor places jumbo orders and presses you
for a higher credit limit.
●
Despite the problems you are having, the debtor
tries to coax you into providing a good credit report to another supplier.
Any one of these hints of trouble can mean it's time to turn
up the heat on your collection efforts with this debtor, and make no more sales
unless they're cash on delivery. Contact us at (518) 798-3330 for more tips.
