Entrepreneur: Hardball Collections Pay Off
One very successful entrepreneur we know acknowledges that he owes his effectiveness in managing credit and collections to one supplier he had soon after he started his business. "I was late paying him, and he put me on COD for six months, no exceptions," he remembers. "And since this was a supplier I relied on heavily, I was forced to visit the plant weekly to pick up material and pay by check. Even if the supplier had been willing to extend 10-day terms to me, I would have jumped at it. It was a real inconvenience to be on COD. Now he is in the position of implementing his own collection and credit philosophy and he learned a lot from the past. Here's his strategy and how it works...
- the surprising way he handles initial credit and personal guarantees (we've never seen a policy quite like this before!)
- learn how his policy on collections works.
- and the results, in terms of sales and DSO.
. . . (to read the remainder of this article, please log in below.)