Tuesday, June 29, 2010

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.

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