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    0 Replies Latest reply on Aug 4, 2011 3:54 PM by ARCHIMEDES EnRich

    Can you grow your business by carefully extending credit ?

    ARCHIMEDES EnRich Adventurer

      Yes you can. First, be careful !  Next, research what types of credit new and existing customers are used to in your specific market.  NEVER extend 100% open credit to any first time customer. Always require basic commercial information. Proof of valid Employer Indentification Number ( EIN ) , 1 verifiable bank reference, and they should be in business for at least one year ( you can be flexible here, but cautious ). If you decide to extend commercial credit do it  gradually.  A possible arrangement is 30% with their written purchase order, 40% on delivery, and 30%  in 30 days.  Carefully research protective terms and conditions to be made a part of your invoice before issuing any invoice that extends credit.  Good credit extending practices will strengthen most commercial banking relationships.  Charles Faber