Michelle Dunn of New Hampshire, author of a new book called “The Guide to Getting Paid: Weed-out Bad Paying Customers, Collect on Past Due Balances, and Avoid Bad Debt”, offered this Top 10 list of mistakes by small businesses.
1) Not having customers fill out and sign a credit application at the time of sale.
2) Getting incomplete information at the time of the sale.
3) Not checking credit or references.
4) Ignoring accounts as they become more and more delinquent — hoping the person will pay.
5) Not having a credit plan that outlines what steps should be taken when someone becomes past due or a check is returned for not enough funds .
6) Not placing accounts with a collection agency soon enough.
7) Not having documentation to support or prove the debt when someone doesn’t pay.
8) Shipping more products or performing more services when an account is already past due.
9) Not checking credit references.
10) Being too lenient with credit when the customer is a friend or family member.
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