A Sound Credit Policy
Unfortunately, sound credit decisions in a growth or sales orientated company are not always made.
Credit executives are routinely forced to make decisions based on inadequate credit history. When a company’s sales department makes many important decisions, it becomes easier to recognize the potential for losses.
Collection agencies exist due to these circumstances and because certain debtors do not respond until a third party intervenes.
What is absolutely fundamental for successful recovery, however, is a thorough in-house policy that is strictly adhered to once the credit terms have been exceeded. This includes getting an account into collection before the debtor skips, the phones are disconnected, or the business closes.
The earlier an account is submitted for collection, the greater the chances for a successful recovery.