New + Potential Customers

Extending credit to new customers is a risk. If proper safeguards are in place, this risk can be minimized. This section provides tips for requesting information from potential customers, offers credit limit decision help, and supplies basic knowledge for credit investigation procedures to verify credit application information.

Dictating Credit Terms and Conditions

Certain information should be provided to potential customers when credit terms are requested. By including the following information on a credit application, you will have a signed acknowledgment of the terms and conditions that govern the business relationship if credit is approved.

• Payment terms and credit policy
• Collection and attorney fees
• Finance and interest charges

Including the above on the credit application will give you certain rights in the event payment is not received within the stated terms.

The Importance of Obtaining Information

It is extremely important to have as much information as possible on companies you are authorizing for credit terms. All information should be verified to limit future credit problems and fraudulent activity. You will never eliminate bad debt, but the more information obtained, the more likely solid credit decisions will be made.

We have successfully used Aguirre, Aikman + Brown for several years. I am very impressed with their promptness, and I especially like the convenience in how we submit new placements via e-mail.

Angie Shaffer
Credit and Collections Manager, Waste Systems International

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