Creative Credit Policies in an Economic Down Turn

By Caryl Nielsen, CBF, Valley Glass

The construction industry, like many others, has been hit hard with the economic down turn. The bottom falling out of the construction industry has made us realize that our trade is not a necessity, but a luxury that most people can live without or put off indefinitely. We find ourselves asking different types of questions like “How can we” instead of “Who should we.”

Our education and experience tell us that as creditors and collectors, we can’t have a lenient credit and collection policy. Credit policies and procedures should be stringent and well researched. There must be a careful evaluation of a company’s ability to pay back the amount of credit we have entrusted to them. Collection policy should enforce the terms of the extension of credit as set forth in our credit policy. If you choose to be lenient in one, you should be very stringent in the other. This is a must to be successful.  View full article

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