Creditors' Rights 14
Q: How can I completely
avoid credit losses?
A: The only way to avoid
credit losses is to act like a fast
food restaurant, where the customer
comes in, orders and
pays, and then, and only then,
the customer gets the product.
The problem with that is that the customers expect to get
credit, and if you don’t give it, they may go somewhere else
to buy their goods and services.
Therefore, create a company that has a culture of establishing
a sound credit and collections policy from the start. Take the
time to research completed credit applications thoroughly.
Include interest chargeable on past due balances and a provision
that if the account goes into default and you refer it to
an attorney for collection, the defaulting party must pay your
attorneys’ fees.
