Stick to your credit policy during tough times and you’ll help your business get through the mess. You will also help preserve your customer relationships.
When times get tough your customers may be enticed to slow pay your invoices. Don’t let them. When you allow your customers to violate your credit policy, these are some of the things that happen:
- Your customer is making his problem your problem. Unacceptable. You have enough to worry about. You don’t need more problems.
- Accepting your customer’s poor payment performance may seem like it’s strengthening your relationship with them. It’s not. Accepting poor payment performance tends to pervert an otherwise good business relationship. The relationship will just continue to deteriorate.
- Once your customer knows that you will accept poor payment performance it will entice them to take further advantage of you.
Though it may seem counter-intuitive to believe that your customer relationship will improve by not accepting slow payments, it’s not. I’ve seen it happen many times.
Stick to your credit policy.