Debt Collecting Q & A - Uneasy About a Potential Customer

by Jim Finucan

Published on this site: May 6th, 2005 - See more articles from this month...

Q) I have a potential customer who is talking about spending over $5,000 with me, but I am uneasy about this guy. How can I decide whether to trust him, even if I get 50% up front?

A) Think about why you are uneasy about this deal. Is there something about this person's reputation that is causing you concern? If your prospect is a business check its credit report through Dunn and Bradstreet. That will tell you whether anyone has a lien on the business. With the prospect's permission you can check the individual's credit report as well, but do you really need to? If you have just cause for your suspicions then follow through with them and act accordingly. If you don't have a strong opinion either way I'd take a chance and do business with him. Getting 50% up front is an excellent technique, which really should alleviate most of your concerns. Having a contract signed and in place is the foolproof way of protecting yourself. Being cautious in your dealings is wise, but don't spread an aura of mistrust over a business relationship that might blossom into something that could turn out to be extremely beneficial to you for years to come.

Take a chance on people if you have no real reason to doubt them. The business world depends on each person's word. Showing faith in people often brings out the best in them. If you've been burned in the past, remember that not all people are like that. Also remember there are incredibly effective strategies for recovering seemingly lost dollars, which you can put into use if things reach that point.

Fifteen-year collections pro Jim Finucan shows you how to double the money you collect from your past due accounts receivable. Check out his one-of-a-kind manual "Past Due." For more information visit: http://www.tiare.com/pastdue.htm