New Customer Credit

[Norm9]

How does everyone handle new customer credit? (If one were lucky enough to gain one) Do you extend credit? require a credit application? Only accept credit cards from new customers?
I am also looking for a sample employee handbook, does anyone have one they will share?
Thanks

 

[JohnWilson]

When the economy started to slide a couple of years ago and I lost control of my AR by over extending credit to long time clients, it was my calling card to change. I decided right then and there to mandate credit cards to all new clients and then continue to convert loyal paying clients to credit cards as well.

It was the best thing I ever did, the new clients that baulked at the idea were not clients I wanted to try and trust, did I loose some that flat declined, of course I did. However I can honestly say my stomach lining is in tact now and my AR is running very close to 98 percent inside of terms

Don't back down be firm in your policy's, be a professional, act like one and you will get the respect from quality accounts.

 

[DMC]

I have around $180k that is owed to me, and is very late from labs.

It sucks.

The worst is/was on this site. I will get my money one way or another from this partiular guy.

I still live OK, but would be a lot better off with what is owed to me.

BE CAREFUL! (Not like me)

 

[Tom Moore]

Credit card or it's a no go. By the case for 45 days and then monthly when we see the credit cart will take the hit.

***. I hear you. Labs make dentists look like choir boys when it comes to paying. I am now especially careful doing lab to lab. That said I do have labs that have been with me almost a decade and never missed a beat but this scenario is alway from larger well run labs. It seems size does matter.

 

[amadent]

When the economy started to slide a couple of years ago and I lost control of my AR by over extending credit to long time clients, it was my calling card to change. I decided right then and there to mandate credit cards to all new clients and then continue to convert loyal paying clients to credit cards as well.

It was the best thing I ever did, the new clients that baulked at the idea were not clients I wanted to try and trust, did I loose some that flat declined, of course I did. However I can honestly say my stomach lining is in tact now and my AR is running very close to 98 percent inside of terms

Don't back down be firm in your policy's, be a professional, act like one and you will get the respect from quality accounts.

we have started that with all new clients as well John, trying to convert long standing clients but some still like mailing out a check on the last day of the month and then arguing about finace charges that appear on following months statement

Greg Amendola MDT

 

[actittle]

For those of you that accept payments via credit card, how do you do that?
Do you charge those clients more to compensate for the expenses associated with it?

 

[JohnWilson]

For those of you that accept payments via credit card, how do you do that?
Do you charge those clients more to compensate for the expenses associated with it?

Its a cost of doing business but I do set up my clients to run their balance in full on the 31st day of the cycle. My cash flow is great, but yes the credit card companies have a pretty sweet gig.

 

[cheadlemick]

I must admit all of my clients pay pretty much within 30 days and quite a few of them pay by direct debit straight to my bank account! Also we dont have a bank overdraft!

 

[actittle]

Sounds like I just need to factor it into my fees

 

[kcdt]

For those of you that accept payments via credit card, how do you do that?
Do you charge those clients more to compensate for the expenses associated with it?

My understanding is that this would be considered a violation of the credit card agreement, and could land you in trouble if it's discovered.