Welcome to our mini learning series “Creating an Effective Credit Policy”
Our law firm is a creditors’ rights law firm. That means that we represent the rights of people that are owed money. This can cover anything from strategies to protect a creditor from fraud if a debtor files for bankruptcy, to commercial debt collection.
Our experience in the credit world has lead to two large understandings.
Those businesses with a clear and effective credit policy are more effective at collecting what is owed to them, without engaging a collections agency or collections attorney.
Those businesses with a clear and effective credit policy are more successful when the debt owed is escalated to a debt collection attorney, typically collecting more, and collecting quicker.
Once you have made the decision that you will be in the business of establishing lines of credit of some sort for your clients, the next step is to establish a clear credit policy and then, of course, to stick to it. Here is a quick primer on getting from ground zero to having an effective credit policy.
This will be an 11 part series (12 if you include this introduction) and will be run every Friday.