| I personally beleive when issueiong credit like this to customers, that you need to be fully aware of there cirsumstances and the way there business operates, if you can build repour with them.
I personally dislike long account periods, really anything more then 14 days is to long for me. But i do find that it is easier for many businesses to just issue a statement at the end of the month. If you especially have clients that are purchasing on almost a daily basis, then you can do some things to ensure getting timely payment, ask that rather then posting the cheque that there driver(if they have one that is) deop the cheque in when picking up an order, around the time the payment is due. Also if they have there own driver to pick up orders you may want to even stop giving them an order if they are really overdue on a payment.
If you are offering good prices and good service, then even some of these little steps to collect money should not cause your client to go elsewhere, but one thing i see in a giving credit is if they arnt going to pay on time then what is the point in having the client anyway, especially if it comes down to they dont pay at all. |