Is there some reason I can`t do my own credit mediation? This is what I`m trying to figure out.
I like Barry`s story about Shakey`s Pizza. You would do well to think about it.
There is no reason that you can`t extend "store credit" to your customers if you are willing to walk away from bad debts. How much money are you talking about? I have a few outstanding invoices that will never get paid, but since the money is relatively insignificant ($20-to-50), it`s not worth the effort and bad publicity to go after them. I ocassionally send them a reminder that I haven`t received the check yet.
If you are talking about a significant amount of money then you should have an attorney draft a loan contract for your business that would stand up in court.
But there`s no reason why you can`t, except, as Barry said, it`s not your business strength. There should be a message in the bank`s refusal to offer a new business credit. If they don`t see a good risk, then go back to my first question - is the amount involved tolerable for you to walk away from if the buyer can`t finish the payments?
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