Know the Red Flags Leading to Credit Problems
If your customer:
...it is time to WORRY and call IRG!
- Submits marginal credit application or refuses to sign personal guarantee
- Breaks Credit Terms
- Does not return messages or mail is returned
- Breaks promise to pay
- Sends only partial payment with no reason
- Suddenly has dispute after receiving product or services
- Stops payment or sends check that is returned NSF
- Mentions cash flow problems
- Asks for extended terms (more time to pay outside of credit agreement)
- Requests increased credit when already past due
It is vital that these Red Flags of Commercial Credit Problems are noted and quickly acted upon. Your customer may begin to stop paying items deemed as unnecessary expenses. One of those items could be the line of credit granted by you. If you see a pattern forming, take immediate action and make a quick decision. If you don't, your customer's other vendors will and you will be last in line to be paid. In this case, the second mouse does not get the cheese.
Remember: Time is Money!
The Longer You Wait, The Less Chance You Or IRG Will Have Of Recovery!