In today’s business world there is competition in any direction you turn.  Almost any product or service you have another company offers as well.  That puts many business people in a state of fear when they have to ask for payment.

Unfortunately, it’s important that you are constantly aware of the amounts of credit you’ve extended to companies and any company that is overdue on terms of payment.  Companies that were financially strong yesterday may not be strong today due to the recession.

Any company you do business with, do the best you can to follow them in the newspapers or even Google them to see if there are any negative stories about the company.  Companies that are on the brink of going out of business will do everything they can to hold on.  That includes using your company as a bank.

Once a weak company is overextended, your chances of collecting money are bleak.  If you are not getting answers on when you will be paid from the accounting department, call the CEO, president or business owner and talk with them directly.  Over the years, till the recession, credit was relatively free and easy to obtain.  With some customers or clients you may have to do what people did years ago:  put them on COD – cash on demand or delivery.

Be careful of any new customers or clients that seem too easy to sell.  They may be buying from you because their previous vendor cut them off because they didn’t pay their bill.  It’s much better to lose a customer or client than to lose your business.  Don’t be afraid to say “no”.  Then look to your sales department to replace the customer you just lost.

It would be smart to have your sales department start looking for new customers now because as the recession and economic recovery wears on you will continue to lose customers.

Customers are important.  Customers should rule or be boss at your company.  And yes, we should provide the best customer service possible.  And yes, we should do everything we can to retain customers.  But a good customer is one that also pays you on time or makes arrangements to pay you on a timely and reasonable basis with the intent of wanting to keep the business relationship in good standing.