Setting Up A Credit Policy
Will you reward Early Payment?
There is a real cost of capital and clients who show good behavior are usually rewarded. You need to make the decision early if you are going to reward early payments. The 2/10 net 30 is usually used which means the customer gets a 2% discount if the bill is paid in 10 days, otherwise full payment is due in 30 days. But there needs to be caution here. In some instances, customers will use the early discount, if they pay on time or not and you might have to use up business resources to recoup the discount or your business might have to take the loss in order to maintain a good relationship with the client.
While a written, as well as online, credit policy, may not be the magic that turns every customer into a responsible and paying citizen, it establishes your expectations in black and white. When your customers fail to meet the expectations outlined in the written credit policy, it may be time to contact a creditor’s rights attorney, such as the firm of Taroff & Taitz, LLP. Taroff & Taitz, LLP believe that creditors have rights, and they will work with you and for you to help recover the credit that you have extended to those who fail to follow the credit policy that you put in writing. They represent a variety of lenders, in various stages of collection. Contact Taroff & Taitz, LLP today to start taking back what is owed to you.