As with other parts of a credit program, managing accounts receivable means learning to use records. A standard recommendation for small businesses is to use a credit collection agency after 60 days and before 90 days. In-House Credit Program It's common in any business to have to wait for payment. Customers are billed or invoiced. Most credit programs charge interest after the allowable payment period.
Financial plans have to consider the costs of carrying slow payments, as well as bad debts.
Payment delays occur for many reasons. Have a contingency or backup plan in place for times when payment takes months to arrive. Credit Cards Credit card companies survive on the percentage of card sales that businesses pay them. Businesses with small sales pay a higher rate.