In the computer consulting business, you need credit policies to prevent non-payment situations. If you set clear credit rules at the beginning of your business life, you can help prevent nonpayment.
1. Every written credit policy should be attached to a two-three-sentence explanation stating credit approval is necessary. If you grant credit, you will always be able to escape if the customer decides not to give you an application or gives incomplete information. You need to have the option of refusing to give credit.
2. You need to demand a deposit check along with the application for credit. This practice lets you determine a client’s willingness to pay and ensures you don’t get a bounced check.
3. Your credit policy in computer consulting should include reference and credit checks for every applicant. A brand new business without a credit history should be handled via credit card.
4. When you set your credit policy, do the right reference checks to find out what is going on with new clients and protect yourself.
5. Don’t give out lines of credit that are too high. You can always increase the credit lines, but you can’t cut them without ruining a potentially long-term relationship. If you start low, you can end high.
Credit policies in computer consulting are critical to help set boundaries and protect you from issues in the future. Make sure you set clear boundaries for clients to help your business.
Added By: Computer Consulting Kit