Interview with Lou Mollitiere
Congratulations! You made that big sale. Now how do you collect your money? Lou and Jim talk about some of the fundamentals of extending credit, collecting receivables, AND keeping the customers in the process. Specifics include the importance of proper credit information collection, a good credit application, sound credit policies, and where to find credit information. They also discuss the importance of having all employees in an organization understand how to extend credit and collect receivables.
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Lou helps Jim focus on the importance of having an effective credit policy as you extend credit to your customers. One idea Lou mentions is having a credit scoring policy, which includes gathering information on a credit application, and determining how much credit to extend to any individual business. Lou also reminds us to get AND check those credit references. He also encourages you to use the banking method of applying the "4 Cs" of providing credit.
Lou begins his visit with Jim by talking about how his company helps small business collect their receivables, including a discussion of some helpful documents. They move on to talk about how to build a sound accounts receivable collection program. Specifically, Lou explains what it means when an account ages and the affects of time on collectability. They talk to a caller who asks how to deal with a collection agency that is contacting you about a collection effort.
