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Helping Contractors Avoid Collection Problems

Difficult as they are, the collection problems of construction industry suppliers like Geneva Rock can pale in comparison to the problems emcountered by construction contractors themselves. The owners of small construction businesses often feel uncomfortable asking prospective clients for credit information. "However, it's essential for entrepreneurs and small companies to do this because they need to be paid on time if they intend to stay in business," observers one credit manager who often counsels his contractor customers on collection problems and tactics. He offers some simple tips to assure prompt payment:
  • how and why you should create your own credit report
  • what six questions you should ask trade references
  • three questions to ask a bank reference
  • final considerations on how to make the decision to sell on open credit or not, and the possible alternatives if you don't think the customer is qualified for of open credit
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