Calling references can help you evaluate a customer's risk, but even if you don't check them, just using the form can deter customers who might default. "When you have someone fill out that credit application, it lets them know that you're serious about your business and you're not just handing out credit," Dunn says. If you wind up in court over an unpaid debt, the signed credit application will bolster your case.
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Tuesday, September 9, 2008
Collecting Money in a Bad Economy
(N.H.) author of several books on debt collection who ran a collection agency for eight years. Her first piece of advice for preventing late payments? Require customers to apply for credit. Credit applications (BusinessWeek.com, 1/8/04), which can be bought at office supply stores, record contact information for the customer, personal references and business references, like banks or employers.
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