Collection Tip: Cutting Corners

Cutting Corners

Ever heard this saying? "An ounce of prevention is worth a pound of cure."

In the busy workplace, there always seems to be too much to do and not enough time to do it in.

Cutting corners may feel like a short term solution, but it can lead to long term collection problems.


Some common corner cutting cases we've come across:

• Relying on opinions and hearsay rather than on credit facts.
• Not insisting that a proper credit application be completed and signed - or failing to notice that it was not signed or properly completed.
• Not verifying information that should be verified before any credit is extended.
• Not investigating and dealing with disputes promptly.
• Failing to follow up on deteriorating payment habits.
• Ignoring overdrawn credit limits instead of reviewing the customer's ability to pay.

The Bottom Line:

Take the time to be thorough. Each and every corner cut throughout your sales or lending process can become a very large obstacle down the road.