Some Quick and Easy Ways to Avoid Bad Debts in Your Business

Some Quick and Easy Steps to Avoid Bad Debts in Your Business

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Having trouble collecting your delinquent accounts receivables? If you are a company and you want to stay in business, one of the first things that you need to do is have a process in place to carefully manage your accounts receivables. If a potential new client wants to do business with you, there are some quick easy steps you can take to see whether you want to provide credit to them. Following these steps can help you avoid bad debts in your business.

  1. See whether the business is legitimate. To operate a legitimate in Maryland or Washington, DC, business, licensing and registration are required. Both Maryland or Washington, DC  host websites where you can search for corporate registrations, business licenses, professional licenses, etc.  Most other States have similar websites.
  2. Look online for a business website.  Most legitimate businesses will have a website. You may want to dial the online phone number on the website or look up the address on Googlemaps to make sure that they are both legitimate.
  3. Perform a credit check on the business. There are a number of firms that you could use to perform the check.
  4. Have the business owner fill out a credit application form. The form should include information about their business.
  5. Ask the business owner to sign a personal guarantee.
  6. Provide the new company with credit terms.
  7. Trust your instincts.  If you believe that something is not right, hold off entering into a business relationship with the potential new client.
  8. It is not always possible to avoid bad debts in your business. Have a back-up plan for handling delinquent receivables.

The attorneys at Kind & Dashoff, LLC are always available to help you collect your delinquent collection accounts. They have a proven record of successful debt collection. You can call them today at +1-410-486-0808.