Home Advertise Contact Blog Advertiser Login RSS
Newsletter Signup

Buy A Business Opportunity of Franchise
Home-Based Businesses
Choosing a Business Opportunity Growth and Profit Marketing and Sales
Plans and Goals Running Your Own Business Start-Up
Working From Home Entrepreneur Exchange Feature Articles
Opportunity Community Opportunity Focus In The News
Come Read Our Featured Articles About Business Opportunities, Franchising, Business Opportunity News and More
Are into healthy living? Do you have an entrepreneurial spirit? If so, you should read about this skincare, beauty and hair care product business opportunity. A company that is pioneering the...
Did you know that you can operate your own business that helps mid to large sized companies with their energy efficiency? Yes you can with this clean technology (cleantech) energy management...
Are you into healthy living? Do you have an interest in working for yourself? Well then, you should check out this nutrition and wellness product business opportunity that enables you to be a top-selling health...

Sponsors

STARSCAPES®
Imagine making up to $500 to $1,800 a day! Call or click now see how you can get your business for FREE! (602) 679-0257
Promotional Products Home Business
Run Your Own Business. Be Your Own Boss. Earn Great Profit Potential. Start At A Low Cost. Try It For Free!
I-insureme
$$$ BUILD HUGE INCOME SELLING SOMETHING EVERYONE MUST HAVE $$$ Call our 24-hour message line at 301-276-5575 now!
Carelumina
Make up to $1,000/week! We are changing the industry with our physician formulated state-of-the-art products & services!
CTFO
TAKE A FREE POSITION NOW WITH CTFO SELLING CBD HEMP OIL! Join The Hottest Wellness Trend & Next Billion Dollar Industry.
TheIncomeTaxSchool.com
Earn up to $100 per hour, this is NOT a Franchise, No Franchise Fees or Royalties work Full or Part-time 1-800-984-1040.
NUMedia
NEW OPPORTUNITY JUST LAUNCHED! Try it before you buy it! Click To Get Your 15-Day FREE Trial! Daily payouts no waiting!
Here's the Quickest & Easiest Way To Earn Passive Income
Absolutely Remarkable Money Making Program! Many come up with excuses when they are afraid to take action! BE DIFFERENT!
Home-Based Travel Business Making $$$$
Cash in with us on the Multi-Trillion Dollar Travel Industry by working as an independent Affiliate for World Discovery!
How Many Leads Does It Take To Close A Sale?
This article is now live on our blog and I know could be very insightful for many. Read On
It Takes a Hot Voicemail to Land a Warm Lead
If you're a successful entrepreneur who provides others like you the chance to follow in your footsteps... Read On
 
Resource Center > Article
Five Basic Rules for Extending Your Customers Credit
29 Sep 11 Posted by: Kathleen C Lanza
in Growth & Profit
Share this Article:

In a tight economy, offering customers the option to pay over time or in installments can be mighty tempting.  In fact, it oftentimes means the difference between getting work and having the work go elsewhere.  The only problem is that many home-based or other small business opportunity or franchise owners don’t have much experience when it comes to extending credit to their customers.

If you think offering your customers the option to delay payment in full is something you can afford to explore further and that would ultimately pay off, here are five important steps you can take to minimize the risk to your bottom line:


  1. Take stock of where you are―If you’re a brand new start-up, chances are good that you don’t have enough cash reserves to tide you over should a customer default on a payment that you’ve been counting on for quite some time already.  A basic rule of small business ownership is that you can only extend credit so long as it does not affect your solvency.  Figuring out what that balance looks like earlier rather than later is critical to your survival and long-term growth.

  2. Set a standard credit policy―When it comes to extending credit to your customers, consistency is important.  Any customer that is granted the option to delay payment must be clearly informed of the terms by which you mean to collect over time.  This must be documented in writing.  Although how you extend credit to your customers must be uniform, who you will grant that privilege to is entirely another matter.  Every customer will not be a viable candidate, which leads to the next point.

  3. Carefully assess each customer’s ability to pay―Check references.  Pull the necessary credit reports.  Don’t ever extend credit to a customer based on a verbal promise of payment unless you are prepared to take a loss should something go wrong.  If what you’re selling has a considerable price tag, then you might want to go so far as to conduct a full-on financial investigation, which would include examining such things as the prospective customer’s overall cash reserves, capital or net worth and overall profitability in terms of net earnings.  Other considerations might include the current economic climate and whether or not your customer’s business is likely to remain profitable.

  4. Let the value of the customer relationship be an additional guide―Whether or not you should enter into an agreement to extend any one customer credit is not only based upon their ability to pay, but the exact nature of your relationship as well.  For instance, if the customer is one that you know will represent significant repeat business for you in the future, then that may tip the scales in that customer’s favor.  However, you must be prepared to rescind any credit terms should the customer delay payments, become unable to pay for any reason or run up an unreasonably large unpaid balance.

  5. Be diligent in collecting your money―At the end of the day, what matters most is that you get paid, especially if you’re a smaller operation and every dollar counts.  Think about offering incentives when it comes to collecting what you are owed, such as a small discount for customers who pay in cash or on time.  Unfortunately, one of the biggest mistakes small business owners make is that they are too lenient when it comes to getting paid.  Don’t be one of them.  This is business, pure and simple.  And if you have an agreement in writing, it speaks for itself.  You’re in the driver’s seat.  So don’t give up on getting your due.

Related Blog Posts
16 Oct 17 Posted by: Margaret Mallonée
in Growth & Profit

Want more sales? Need to grow your business? Use the Top 7 Methods to Generate More Leads!

If you read Friday’s blog, you know that one of the best ways to increase sales is to generate more leads....
21 Apr 17 Posted by: Kevin James Culp
in Growth & Profit

Offering Financing Boosts Bottom Line - Staying afloat takes some capital. But the process of attracting financing is confusing for small business owners.

Offering Financing Boosts Bottom Line - Here is a look at how you can offer help with financing and credit to small business owners. You...
19 Aug 16 Posted by: Kevin James Culp
in Growth & Profit

The Business Franchise Opportunity Sales Tips 7 Part Series was an idea launched by Keith Shaffer Director of Personal at TheLocalProject.net two weeks ago after a coaching session.  The credit goes to him for this...

10 Feb 16 Posted by: Kevin James Culp
in Growth & Profit
Sales Hack to make you more money! Sales Hacks are not new, but how you use them is.  We receive lots of emails from people about various issues and we are always happy to help.  We also in many cases learn how we can do business better for the future.  Today, I share with you an actual letter we received...
29 Dec 15 Posted by: Kevin James Culp
in Growth & Profit
Funding is the lifeblood of any business. The principle reason entrepreneurs put off starting their own business is lack of it. Raising funds from venture capitalists, friends and family is fraught with danger and is often very time consuming. Funding your business by mortgaging your home is risky too....
 
   
Entrepreneur's Source for Everything Business Opportunity and Franchise Related

I had the pleasure of chatting with Shawn Pigg, CEO of Hotels Etc. for BusinessOpportunity.com's Podcast series that will be released very soon on our new Digital Platform.  Here is the transcript from that call for our regular RSS feed subscribers who get all of our posts first.

If you would...
Read More


Premium Sponsor