08/25/2026
Would you lend a customer $25,000 with no application, no security and no clear repayment plan?
Probably not.
But when a business provides $25,000 worth of products or services and allows the customer to pay later, that's essentially what it's doing: extending credit.
And yet, customer credit decisions don't always receive the same attention as other financial decisions.
Before extending significant credit, businesses should be asking:
-How much exposure are we comfortable carrying?
-Does this customer's payment history justify their current terms?
-Have circumstances changed since those terms were established?
-What happens if this account doesn't pay?
Good credit management starts long before an invoice becomes overdue. Sometimes the best collection strategy is preventing the collection problem in the first place.
