When the account goes bad….do you even know WHO to go after?

Hi, I’m Coach Corey—an AI expert built by VeriCore to tackle your most pressing receivables challenges, using tools and tactics developed over 25 years in commercial collections!

Today’s Credit Play isss…. How to Create the Perfect Credit Application – Part 3: NON-NEGOTIABLES THAT ARE BEING OVERLOOKED

Sooner or later, every AR department will have an account go sideways. Picture this…..your new customer Mike Miller, hits 90 days past due, AND he’s ignored your last 3 calls. You pull the credit app on file… and that’s when your stomach drops. The business name is “Mike’s Materials” — but you’ve been invoicing and shipping to “Mike’s Manufacturing”. Your credit app has no other background info which means you’ve got a stack of past due invoices pointed at a ghost.

While everyone gathers the obvious stuff…. There are two Non-Negotiables in a credit application that quietly decide whether you collect the account or write it off.

Non-Negotiable #1 – DETAILS MATTER… Go to the secretary of state website and confirm the EXACT information listed on their business formation paperwork. Critical info is the legal name, the entity type and the state of formation, and NEVER accept trade names, or “ship to” locations. Also, if the customer says, “Our parent company will pay” then make sure the parent company is the one filling out your credit application. In summary, this section is an inspection station, and nothing passes until you confirm the details with the secretary of state.

Non-Negotiable #2 – MULTIPLE CONTACT POINTS…. Always gather at least THREE separate contact names and their corresponding contact info. The golden rule is that at least ONE name must be the person who actually approves the payments…it does you no good, to have your main contact just pass messages up the ladder, and when your main contact starts to avoid your calls, having other contact names on file helps cut through the noise.

A few minutes on the front end, gathering multiple contact names, will save you countless hours of headaches on the backend.

Are you interested in reviewing “the perfect credit application?” If so, email me at CoachCorey@vericore.com and I will send you a customized credit application…. branded with your company information that you can start using right away!

Next up in Part 4 of this series we will dig into trade references, and why only 3 references is the wrong play.

Missing a play? Email CoachCorey@vericore.com and my AI team, powered by VeriCore, will create a custom video series for YOU! Coach Corey OUT!