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Protecting Against Delinquent Accounts
Receivable
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There will always be some customers who are slow pay or
no pay.
Don't just sit back and wait. The
longer you wait the greater the likelihood of not collecting!
The better you know your customers, the easier it is to collect. The
best time to get the information is in the beginning of your
relationship. One way to assure you have a complete file is to make the
sales staff's commissions and bonuses contingent on getting all the
information and the contracts signed. If the
business is a closely held corporation or limited liability company,
get the personal guarantee of the owners.
Crucial
Information:
- Business
Facts -
Frequently the exact
business name, type of organization ( Limited
Liability Company, Corporation, Partnership,) Tax ID Number, names
and
address of officers, and shareholders of a closely help business
are not even in the file.
- Customer
Contacts and Bill Payers - You should have a list of the
key players and the person that actually cuts the check.
- Have
the Payment Facts - Know how much is owed and the payment
history of each client.
- Risk
of the Customer Defaulting - What is the credit worthiness
of the customer? Did you run a credit check?
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| If you have a question., call Ronald J. Cappuccio, J.D.,
LL.M.(Tax) at (856)
665-2121 |
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