How to Deal with Credit Problems

Posted by financer | July 8, 2010 .

Closing the door on a customer who cannot pay is rather expensive to the salesperson and to the customer as well, assuming the product or service is really needed in business. That’s why, before setting for the closed door option, it pays to review the facts of the case with some pertinent question in mind.

Can the salesperson save the account? Is there anything that can be done to turn the credit problem into a sales opportunity?

There are credit problem that little or nothing can be done about, some that can be worked around, and some that may be able to turn to special advantage. The following guidelines can be applied when handling credit problem:

Find out why the credit problem exists by talking to the customer. Also check with other sales representatives who do business with the customer. Find out what should be done and then apply certain measures in dealing with it.
Help the customer reverse the misfortune. An experienced salesperson will be credible in helping the customer analyze the stores operations and potentials, providing constructive tips on purchasing, inventory management and employing sales personnel with pleasing personality, positive attitude and ambition to help the business grow.
Thoroughly check product’s productivity. Using the product properly will mean savings for the customer. The need for training and demonstration as to how to use the product properly and productively is necessary to save time and money.
Try to undertake some constructive rule breaking. A financial bind happens in every business particularly when a customer made considerable buying of goods in preparation for peak season. A customer doing business for years may be worthy to be given a little consideration.
Maximize selling via C.O.D. Encourage customer to purchase fast moving items to be able to recover immediately money invested.
Drop the account. There are customers whose character is to give suppliers and sales representatives a hard time when it comes to payment, returned goods and damage claims that it doesn’t pay to do business with them.

Handling credit problem depends on the customer’s status, the company’s policy and the salesperson.