Extending Business Credit – Are there open Collection Actions?
Are there open Collection Actions?
Good Business Credit Reports will list a history of collections and outcomes. This is critical information if you intend to offer Business Credit.
Just because a client is in financial trouble, and has open collections, does not mean that they are a bad client. Sometimes the most loyal clients, are those that had vendors that worked them through a rough patch. However, if the customer is presently in collections, this is a large consideration with how much credit you should be willing to extend, and how quickly you react to delinquent business accounts.