How can a business protect themselves from uncollectable accounts?

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How can a business protect themselves from uncollectable accounts?

2006-10-11 03:30:16 · 3 answers · asked by starlight l 2 in Business & Finance ➔ Other - Business & Finance

3 answers

The only surefire way is to make all of your sales cash-only, but that's not very practical. You can manage your receivable risk better by doing solid credit checks up front.

2006-10-11 03:34:31 · answer #1 · answered by ErnestoV 2 · 1⤊ 0⤋

Well, that really depends on your business. If you are in a mainly sales environment, demand payment upon receipt. If you are in a service environment, do credit checks on customers and try to get payment up front.

2006-10-11 03:38:15 · answer #2 · answered by startwinkle05 6 · 0⤊ 0⤋

cash in advance.

2006-10-11 09:46:10 · answer #3 · answered by William P 3 · 0⤊ 0⤋