Start with well though-out credit applications. The application should contain crucial customer information—the name, address and phone number of the customer, the owners of corporate clients and credit references. Complete names and addresses will ease collecting delinquent accounts. Customers are willing to supply this information up front to avoid having to pay cash.
You can word the application so that your company has the right to collect interest when accounts are paid late and attorney fees if incurred. A credit application can also ask for personal guarantees of the individual behind corporate customers or the guarantees of the customer’s partners or spouse. This enables you to collect the debt from these other individuals if the customer does not pay it.
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