Bob Paul, SCORE counselor at Grayslake branch
“Revise your credit policy now to avoid problems associated with extending credit later” says SCORE counselor Bob Paul. (He was vice president of credit and collections at John Deere for a multi-billion portfolio of loans to businesses and individuals.) Here are his 4 keys to extending credit.
1) Avoid extending credit if possible. Get paid on delivery, in advance, or at specified milestones during a project. Accept credit card payments where possible. Extend credit only if it is demanded in your industry. Providing credit to your customers eats up your cash and costs you money in terms of added expenses and a higher level of debt. Be sure you are appropriately compensated either through interest collected or through your pricing strategy. Read the rest of this entry »
