How credit management affects your customersMichelle Dunn
March 7, 2012 — 1,056 views
It is up to you to be fair, reasonable and follow the law to ensure your customers will not be intimidated by your credit policy and will continue to be a good paying customer who will refer you to others.
Some customers with bad credit look for businesses they can order from without having to fill out a credit application or any type of new account forms. If a customer balks at filling out any new account information, set them up as Cash On Delivery or pre-payment only. Never extend credit without getting at least a signed credit application and checking references.
A good customer will not run away when they have to fill out any paperwork, and will be glad they are dealing with an organized, professional business. They will feel more secure doing business with you and know you are serious about your business. This elevated your business in the eyes of the customer, they will know you are an upstanding business owner with values and they will want to do business with you.
When a potential customer fills out a credit application you can get near perfect information about that customer and how they pay their bills, and if they can afford more debt. Most consumers who take the time to fill out a credit application are serious about buying from you. Otherwise they would just go down the street to where they can buy without filling out any paperwork.
After extensive research it was found that consumers who can obtain credit will even pay more for a product or service when they are extended credit and have great customer service. The faster, easier, and smoother procedures will get the most and better paying customers. The result is more sales, more income, and happier customers for your business. This also can result in word-of-mouth advertising from happy customers, and that is free.
Michelle Dunn, Writer LLC
Michelle Dunn is a 24 year debt collection industry veteran, entrepreneur, award winning author, self-syndicated columnist, one of the Top 5 Women in Collections and one of the Top 50 most influential collection professionals in her industry.