Question
Giving customers time to pay their bill generates more sales.But when a recession hits, they may have trouble making payments.If you have businesses as clients,
Giving customers time to pay their bill generates more sales.But when a recession hits, they may have trouble making payments.If you have businesses as clients, they may have slow-payingcustomers, which means that they will be slow paying you.That is what happened to Terry Croom'sbusiness, BizConGroup, a business services company, witha discount card as a primary product.Croomestimated that 50% of his customers--other small businesses--were behind in paying what they owed him.Croomneeded those customers to keep his business operating, so he was hesitant to demand payment on past due accounts.
Should small business owners push customers to pay when times are tough? Why or Why not?
What problems do you think a business services company might have when its customers do not pay?
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