If you're an existing business with bad debt, you can create a credit policy and implement it with existing and future customers right now. If you have a pile of bad debt, it is never too late to implement a credit policy. She also owns and runs Credit & Collections. In addition to writing and marketing her books, Michelle moderates and runs Credit & Collections. Michelle Dunn has over 17 years experience in credit and debt collection.

Having a sound credit policy in place helps ensure that you will get paid, as long as it is enforced. She also owns and runs Credit & Collections. It may cost you some money to have credit applications and other forms printed, hire someone to run your Credit Department or do credit checks, but it will result in more money for you and your business. Michelle Dunn has over 17 years experience in credit and debt collection. Michelle Dunn presents examples of credit procedures and policies to help creditors or business owners collect bad debt and prevent it in the future.

You can keep track of that even if you are on not on the premises with a good procedural policy for employees who ring up sales. It is not wise to have a business checking account at a savings bank because they will not credit your deposits with the total amount from your deposited checks until those checks have cleared. You should shoot for 50-60% credit card sales and debit cards. This way you will know exactly how much is going into your merchant account and how much of your volume percentage is being done through credit card usage. The rest will be in cash or credit card sales.

Next we have to look at how your business is going to work towards and then achieve its new Policy. A good starting point is to identify the objectives each department need to set in order to meet the requirements of your policy. Well done, you have just written your companies Quality Management System Policy. Excellent, you have documented a Quality Management System policy for your business, set departmental objectives needed to meet that policy and generated records which can be used for business process improvement. Run credit check on new customers before loading order to production schedule.

It's amazing what you can accomplish if you don't care who gets the credit.

Make presenting your Security Policy part of your new employee orientation procedure. Make sure the person responsible for updating your company's Security Policy has guidelines and boundaries, and most of all, make sure you read and approve any changes made by someone else. Protect this critical business asset with an iron-clad Security Policy. For help with creating your security policy or to find security software or other small business programs, visit. Make sure every employee reads the policy, signs and dates a document certifying that it has been read, and then keep the signed and dated certification in their respective personnel folder.

I'm not talking about the way people pay like credit cards, digital payments, checks, and cash options. What I'm taking about is can your customers try before they buy, pay later, make payments, do they get a rebate, etc. The way you structure your payment offers can increase your sales. Below are six payment offers that will sell like your products or services like crazy.

I'd never realised that I had that credit, but looking back, my standards and values were daily deposits. It was as if, as Steven Covey says, in 'The Seven Habits of Highly Effective People', I had enough credit in my 'emotional bank account' to tide me over. He has hundreds of hints, tips and ideas at his website, http. He works worldwide, mainly by phone, with small business owners, managers and corporate leaders. Martin Haworth is a Business and Management Coach.

Your credit policy can influence your cash flow and earnings. When you develop a receivable policy, consider the following. You can, however, use price increases to offset more liberal credit terms. Check the financial health of customers before offering them credit. Do you have a policy of determining what is obsolete inventory and how and when to get rid of it.

Perform a credit history check before extending credit. Require all sales and money management staff to know and follow credit policies. Establish your credit terms in writing on statements and invoices. If a company's receivables are large enough and they have a budget which allows them to add experienced, full-time debt collectors to their staff, they should make the investment in additional personnel. As for maintaining or restoring a healthy accounts receivable portfolio, companies may need to invest in additional personnel or outside services with expertise in delinquent debt collection.

In defending its position regarding its document shredding policy, Arthur Andersen's case would have been much stronger if its policy development team had a representative from the legal department who ensured the legality of such a policy. What's the Cost of an Ineffective Policy-based Management System. To be effective, a policy must possess the following characteristics. A legal and well-articulated policy that documents the responsibilities of the CEOs and the CFOs could have exonerated either party. Whether in government, industry, or academia, organizations have always employed policy-based management with varying degree of success.

This is an actual dollar-for-dollar tax credit against your tax liability and not a deduction. In September 2004, President Bush signed the $146 billion tax cut bill restoring the recently expired business Research & Experimentation Tax Credit. The 18-month renewal of the research and experimentation tax credit, which expired June 30 2004, was the most expensive item with an expected $7. Tax credits may expire again later in 2005, so act before it is too late. Activity for product or process improvement must relate to a function, performance, reliability or quality.

For example, by paying now, they may continue to enjoy open account terms, or your credit rating won't be damaged. This assures the debtor of their success in evading payment, and a phrase such as to keep your good credit rating may be impractical in a situation that has reached a certain stage of commercial collection. Although a letter cannot discover the reason, it can give the customer a way in which they will benefit. If a customer has not paid, there is a reason for it. These are factors that can be used to bring prompt payments.

If we need a new lawn mower, we simply pull out the trusty credit card, sign on the dotted line and put off worrying about it until next month. The credit card company facilitates a credit arrangement between you and themselves, and the proceeds of this extension are directly used and repaid by you, the borrower. Many have given in to this temptation, and are paying the heavy cost of damaged or ruined credit. Equipment Leasing - With it's one-hundred percent financing, preservation of credit lines, tax benefits and the ability to avoid obsolescence, equipment leasing is one of the sharpest and most efficient cash flow tools a business owner can utilize. Once purchase order financing has been successfully utilized for some time, it usually becomes easier for the business to take advantage of more economical means of credit.

Normally a business motor vehicle policy should set the boundaries of employee use such as. By taking time to develop key human resource policies and procedures and by inducting and training your employees you can reduce the potential business and financial risk to your company. Philip Lye is the Director of Biz Momentum providing strategic human resource management to help your business grow. Biz Momentum assist small to medium businesses. I this day and age employees cannot always be relied upon to exercise discretion and common sense.