Prevention is the best debt collection strategy, and it starts with a rock-solid credit policy. At Advantage Collections, we’ve seen businesses cut delinquent accounts by up to 40% with the right approach. Here’s how to build a policy that keeps debt off your books:
- Screen Customers: Run quick credit checks or ask for references before extending terms. A little due diligence goes a long way.
- Limit Exposure: Set credit caps based on customer size or history—don’t let one client’s tab sink your cash flow.
- Enforce Consistency: Train your team to stick to the policy, no exceptions. Flexibility sounds nice until it’s a $10,000 lesson.
A strong credit policy isn’t just defense—it’s good business. If debt still sneaks through, we’re here to clean it up. Want a second set of eyes on your process? Give us a shout.
