If you’re a small business owner, you can spend an awful lot of time in the muck of collecting, or trying to collect, bad debt. There’s a good piece about this on the New York Times site today in which Jay Goltz, an owner of five businesses in Chicago, explains his experience in collections.
Goltz notes correctly that the biggest trap most small businesses fall into is extending credit when a client already has a significant balance due. You don’t want to lose their business, so you let them have another $5,000. And then, surprise! They don’t make any payments. Read more…
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