Great Northern Investigators

Tips:

Collect personal and business references with name, telephone number and the reference's relationship to the applicant.

If it is a business account, ask if they use purchase orders. If they do, record the purchase order number on the invoice.

Do not take post-office boxes or private mail boxes as ship-to or billing addresses. Make certain that you have a real street address of the business.

Obtain home, cell (nowadays, everyone has one) and work telephone numbers from your customer.

If you are extending credit to a business, get a personal gaurantee from the owner. When dealing with someone who is not an owner of the business, make certain that the person is authorized to conduct business on behalf of the company.

Ask for and verify bank and credit references before the first sale. If possible, and with the proper authorization, run some type of credit report which will tell you how they handle their financial obligations.

Post your return check fees on or near your checkout counter, on your website, or in your contract.

Always obtain a Social Security Number (SSN) or an Employer Identification Number (EIN) for those invoices with credit terms, or with customers whose dependability is in question.

Offer credit terms that work for your customer but that also meets your cash flow needs.

Place a sentence at the bottom of your invoice or receipt that reads: All past due accounts xx days or greater past due may be reported to the major credit bureaus as an unpaid collection account.

If it is a mail order purchase, make certain that you require a signature or delivery confirmation from the customer.

Offer a prepayment or "early out" discount on invoices with terms.

Set credit extension guidelines and limits based on the risk that you are willing to take, and always stick to those guidelines.

Big sales are exciting; but be wary of unknown or new customers seeking large orders on terms or with unsecured funds (e.g. personal check). Thieves know that a big order will get them past some of the normal scrutiny faced by businesses due to the excitement factor.