Marketing Help

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Extending credit Extending credit is something you should avoid at all costs. If it’s a corporate customer (not the car dealership down the road) you won’t have much choice and a large company is not likely to stiff you but make sure of the following: a) That the person giving you the order is authorized to place orders of this nature (you can easily call the HR department to check). b) That you have a signed sample (always make 2 samples – customer signs both, you keep one, they keep one). This is essential so they can’t come back to you later and say what you delivered differs from what they ordered. c) Get a written confirmation of how long it will take for you to be paid. d) Find out who is supposed to get the delivery and make sure when you deliver that they sign acceptance of the order. e) Get the details of the department that deals with payment, send them the signed receipt and invoice and confirm that they have received it. In the case of smaller companies you should do a credit check on them – There are companies that do this as a business and for a fee with perform a credit check for you. (i) Make all customers getting credit, sign personal surety for the debt their company is incurring (see the back of our invoices for terms you can use)

(ii)

If possible, get credit insurance on the customer from one of the large credit vetting agencies – you can only do this if it’s going to be a customer you will be supplying on an ongoing basis.

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