Everyone on the Same Page
"While we are not totally a service company, the products we sell are often comingled with other suppliers', and identification problems are obvious. But whatever the product or service that is provided, collection of the account begins when the account is initially established. "It's one of the basic lessons learned: If properly established, an account is half collected. Make sure your customer knows what your terms are and that you expect them to be maintained. This is most important with customers that may be financially sound but have a pattern of slow pay. We acknowledge terms when our sales reps first contact the prospective customer, and again when we approve the account via a letter of welcome. In addition, we may ask our sales rep to make an additional contact for the customer's personal commitment to terms. There is always less chance of a problem when everyone knows what's expected." Lance E. Harvey, CCE
Business Credit Manager
Agway Petroleum Corp.
Syracuse, New York Editor's Note: The above article originally appeared in the Credit & Collection Manager's Letter, a newsletter purchased by CollectionForum.com in 2006. This article originally appeared prior to 2000.
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