Credit Accounts For Clients!

[FluxServices]

Hi,

I am just in thinking mode at the moment accept I have give a client a credit account but seems to be usefull for the cleints.

The reason is I started this post is I am woundering if anyone can tell me weather this is a good idea to give protential clients credit accounts or returning clients.

1. Is it a good idea
2. how much would be reasonable
3. Would you accept them to pay in hole or a certain price each month.

Cheers and replys would he helpful and thanks in advance

[maxine]

I would suggest the answers to 1,2 & 3 all depend on the credit risk of each type of client rather than a broad brush approach to all of your business :)

[Monica_ChilliApple]

Hi Phill,

1.) I think this isn't a bad idea at all as long as you're aware that the client is good in payment terms.
2.) Reasonable amount is hard to define but I think it may differ from client to client on the basis of client's work requirements, ability to pay & a few other factors.
3.) I think monthly payments is a good option.

These are solely my views, may differ from yours.

But still I hope this helps :)

[UKSEOAgency]

I give my better paying clients a small credit line - an amount that should i lose it It would not affect the business as a whole.

However when I take this approach, it is only with existing clients I have a good relationship with, and they are aware if the money is not in our bank account by x day then the credit is wholly withdrawn

[Tej]

Depends on how hungry you are for work.. and what risk you are prepared to take.

Reward.. normally commensurate with risk:)

[Findermonkey]

We can credit check companies to see if they are worth offering credit too. We also give other details so you can build a clearer picture of your potential clients financial situation. We add other bits in too so in the event of them not paying you have plenty of details to hand to get in touch with them quickly. PM me for further information or visit our site.

[alphanumeric]

depends on the client and how close the business is to me, all my local clients expect and get at least 30 days depending on the type of project.

However if im dealing with a client at the other end of the country for something simple i ask for payment before completion or final handover

[FluxServices]

Thanks for all the comments, I will proceed with care when giving customers credit accounts.

Cheers for the advise peeps

Cheers

[wevet]

I make a charge for clients who use accounts and a discount for those who pay on receipt. It has not damaged the business and has boosted the cashflow significantly.