Many dealers have in-house credit programs, but not all of them have formal credit policies to support them, which can leave a company open to unnecessary risk. This article explains how to protect and bolster your bottom line by incorporating these five best practices:
1. Set explicit credit limits.
2. Develop clear qualification criteria.
3. Know when to ask for personal guarantees and how to
use them effectively.
4. Learn how to manage late fees with your customers,
and when to waive them.
5. Don’t “set it and forget it”.
About the Author
Scott is president and CEO of BlueTarp. He has spent the majority of his twenty year career in financial services helping businesses grow more rapidly through the effective use of credit.More Content by Scott Simpson