According to MY GP cloud, stick to your credit policy during tough times and you will help your business get through the mess. You will also help preserve your customer relationships.
When times get tough, your customers may be enticed to pay your invoices. Do not let them. When you allow your customers to violate your credit policy, many things can happen.
Some of that are as follows:
Your customer is making his problem your problem. Unacceptable, you have enough to worry about and you do not need more problems.
Accepting your customer’s poor payment performance may seem like it is strengthening your relationship with them. It is not. Accepting poor payment performance tends to pervert an otherwise good business relationship. The relationship will just continue to deteriorate.
Once your customer knows that you will accept poor payment performance it will entice them to take further advantage of you.
According to cloud accounting, though it may seem counter-intuitive to believe that your customer relationship will improve by not accepting slow payments, it is not. I have seen it happen many times.
Stick to your credit policy.
To know more about online accounting software, online business software, cloud accounting, hosted dynamics GP, online great plains, web based accounting software, online financial software, online ERP software feel free to visit us at: http://www.mygpcloud.com
Article Source – http://blog.mygpcloud.com/2012/07/stick-to-your-credit-policy-and-save-your-customer-relationships