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- Types of Credit: Consumer Credit; Bank Credit; Commercial Credit; B2B; Business to Business
- Written Credit Policy Manual
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- Do's and Don'ts of Business to Business Debt Collection, Debt Collection Practices
- Bad Debt Reserves
- Advantages and Disadvantages of Purchasing Credit Insurance
- A Letter of Introduction
- Addressing Chronic Slow Pay Customers
- More about Cash Forecasting
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A Letter of Introduction
Most credit departments do not send out letters of introduction to new customers. In my opinion, this is a missed opportunity. The letter is an opportunity to set the stage for what is hopefully a long and mutually beneficial working relationship. One important thing to cover in your letter of introduction involves confirming your company’s payment terms. Doing so reduces the chances of a ‘misunderstanding’ with that customer, and telling a new account in a non-confrontational manner what you expect and what they can expect from you can actually strengthen the working relationship. After receiving the letter of introduction, if a new account fails to pay invoices within a reasonable time frame, it will not be the result of a misunderstanding or for lack of effort on the part of the credit department. If credit terms must be withdrawn due to slow payment, the customer can only blame themselves.
© 2010. Michael C. Dennis. All Rights Reserved