Do you hold the line with customers who don’t pay on time?

Scripture: Reject a factious man after a first and second warning (Titus 3:10).

Today’s Thought: Customers that fail to pay on time can kill any business. Most companies that file bankruptcy have demonstrated consistent payment problems with their vendors. If you want your business to succeed, you can’t afford to become a creditor to companies that don’t play.

Develop a credit policy that fits and protects your business. Communicate your terms clearly to your customers, and ask for their agreement. Set reasonable credit limits and payment terms, and then hold the line. If payments are late, don’t extend additional credit to that customer until their account is brought current.

Switch accounts to C.O.D. if a customer starts to stretch you out, and don’t be afraid to drop accounts that consistently fail to meet their obligations. If you hold the line on credit, you will avoid holding an empty bag in the end.

Take his garment when he becomes surety for a stranger; and for foreigners, hold him in pledge (Proverbs 20:16).

If you hold the line on credit, you will avoid holding an empty bag in the end.