Beginning the credit process

The most critical moment in a credit relationship is at the moment the sale is made. You must do these things at that time:

1. Explain to the customer when you expect payment.
2. Make sure your terms are part of the sales contract.
2. Ask for credit references, check them out, and proceed accordingly.

Be careful not to let your desire to make a sale overrule good judgement when you see a marginal credit risk.