By James C. “Beau” Brincefield, Jr.
Business News, published by the Alexandria Chamber of Commerce

Unless you get paid in advance for the goods and/or services you sell, you are extending credit to your customers and clients. Here are a few tips for improving the collectability of those accounts receivable.

Get it in writing. Using a simple, one page written purchase order form accomplishes several critically important objectives in addition to providing written evidence of the client’s/customer’s agreement and obligation to pay.

Collect interest. A written agreement can obligate the customer/client to pay interest on a delinquent account.

Collect Collection expenses. A written agreement can obligate the customer/client to pay the cost of collecting a delinquent account, including attorney’s fees and court costs. Without a written agreement, you cannot recover your collection costs.

Extend the statue of limitation. A written agreement extends the statue of limitations on delinquent accounts from three years to five.

Keep track of your client/customer. A written agreement provides an easy way to obtain basic information about your customer/client, which will improve your ability to collect an account if it becomes delinquent.

Call Beau at (703) 836-2880 for a free copy of the complete article from which these excerpts were taken.