How can a business protect against uncollectible accounts? Which protection measures do you think are worth the expense?

Superfly999

looks at the post I put in your other question.

ivory5130

I don't see the relation between the answer or opinion you gave for the other question and this one. Can you help me to see it?

Superfly999

lol I am surprized you answered back this late :P but when i said what do customers always try to find in papers, ads, and other things sent in your mail and that makes them want to go buy it (used probably mostly on grocery items); I meant that there are coupons or discounts that you could provide that would maybe make the customer think "Hey! this price went down some so I might as well pay up" or "This make it where I can actually pay off this debt." Another thing you could do is maybe put them on a payment plan if they can't flat out pay you (in certain situations) hope this helped if not I will try again

giralf

[quote=ivory5130]How can a business protect against uncollectible accounts? Which protection measures do you think are worth the expense that can be taken by a business?

Lukens

One way that a business can protect against uncollectible accounts is to get credit risk insurance. This type of insurance protects your business from losses due to customer bankruptcy or slow payments. With the unfortunate reality of increased number of companies declaring bankruptcy as a result of our country's current economic situation, credit risk insurance is becoming more and more important. Among the many benefits of credit risk insurance are the avoidance catastrophic bad debt losses and allowing you to increase sales without increasing risk of mispayments.

Lukens

...and after taking a quick look at a website for one company that deals with credit risk insurance (recommended to me by an exceptionally reliable colleague), I think you should take a look at OneSource's website Credit Insurance ~ Business Credit Insurance ~ Credit Risk Insurance from One Source. It seems to be pretty informative and it may help to answer some of the questions you have about protecting your business. Goodluck!