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KNOW
THE PRELIMINARY WARNING SIGNS
RECOGNIZING THE “WARNING SIGNS” COULD
SAVE TIME AND MONEY ON POTENTIAL CREDIT PROBLEMS AND COULD HELP PROTECT
YOUR BUSINESS! LEARNING THESE
“WARNING SIGNS” AND BEING ABLE TO ACT UPON THEM,
CAN MAKE THE DIFFERENCE BETWEEN SUCCESSFUL COLLECTIONS AND NO COLLECTIONS.
THE WARNING SIGNS
A. BREAKING TERMS:
A NEW CUSTOMER DOES
NOT PAY IN ACCORDANCE WITH THE TERMS OF THE SALE
OR CONTRACT, OR AN ESTABLISHED CUSTOMER IS SLOW IN PAYING.
B. AVOIDS CONTACT:
NEVER IN, DOES NOT
RETURN YOUR PHONE CALLS.
C. BROKEN PROMISES:
PROMISED TO PAY,
BUT THE CHECK DID NOT ARRIVE.
D. LATE DISPUTE:
ONLY STARTED TO
DISPUTE THE DEBT WHEN CLIENT BEGAN TO DEMAND PAYMENT VIA LETTER OR BY
TELEPHONE.
E. PARTIAL PAYMENT / SHORT PAY:
MAKES PARTIAL
PAYMENT OF AN INVOICE OR INVOICES, WITHOUT PRIOR AGREEMENT, OR SHORT PAYS
INVOICE(S).
F. MANAGEMENT TURNOVER:
CONSISTENT TURNOVER
OF EXECUTIVE PERSONNEL (I.E. PRESIDENT/C.F.O.) AND SHORT-TERM EMPLOYMENT OF
THE COMPTROLLER; COMPANY SHOWS SIGNS OF INSTABILITY.
G. FINANCIALS UNAVAILABLE:
FINANCIAL
INFORMATION WAS REFUSED OR CLIENT REQUESTS NEW INFORMATION AND DOES NOT
RECEIVE IT
ANY
ONE OF THE ABOVE WARNING SIGNS SHOULD BE A SIGNAL TO INTENSIFY COLLECTIONS
EFFORTS!!
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