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Monday, August 28, 2006

Creating a Successful Computer Consulting Business By Establishing a Credit Policy

As a professional in the computer consulting industry, you need to protect yourself from non-paying clients by setting a very clear credit policy from the beginning of your business.

CREDIT POLICY TIPS

1. Every written credit policy should include a few sentences explaining that credit lines are subject to credit approval. If you grant credit, you can give yourself a way out of the situation if they don’t give you a credit application, the application is not complete or they have bad credit.

2. Make sure to get a deposit check with the application. This will let you determine ability and willingness to pay by making sure the client’s checks are good.

3. The credit policy you establish should demand a reference and credit check for each client that applies. With brand new businesses that have no credit history, you should request the contracts be handled with a credit card.

4. Do the reference checks yourself when you are establishing credit policy and look carefully for red flags.

5. Be modest hen granting lines of credit as part of your credit policy. You can always increase lines of credit, but can’t cut them without hurting a potentially long-term relationship. If you start low, you have room to grow.

Added By: Computer Consulting 101 Professional Kit