If you extend credit to your customers, sooner or later you’ll have trouble collecting unpaid bills. Your first goal, of course, is to get paid. A second goal is to avoid legal problems and unnecessary expense in the collection process. And you also may want to be able to do business with the slow-paying customer in the future, if possible.
Extending credit will never be risk-free, but you can reduce the risk by screening those who apply for credit, especially where larger sums of money are involved. Make sure the credit terms are clear. The customer should know when payments are
