The size of your company and its resources will help determine your approach to extending credit and collecting accounts. The scenarios that follow illustrate two different approaches to credit and collections. David employs two other drivers and an office manager. Some of these one-time customers are consumers. His office manager sends out bills to his regular business customers once a month.
Payment is required within thirty days.
David's office manager sends out payment reminder letters when an account is thirty days, sixty days, and ninety days past due. Each letter is a bit more forceful than the last. If payment is not made, David calls the customer again when the account is ninety days old. The collection agency keeps 50 percent of the amount it collects on each account and remits the balance to Roadhopper. When he filed his first two or three cases, David paid his attorney on an hourly basis for advice on how to prepare for and handle the case.