Covering Business Credit

Credit Questions and Answers
Business Credit and Collections
Commercial Credit Management

Return to Q and A 2004Home

Doctor Credit

I am under tremendous pressure to sell more to a high-risk account. This particular customer has a deficit net worth and is in serious trouble based on the number of vendors the customer is paying slow, and the number of accounts that have placed the debtor for collection, and the existence of at least two tax liens on the company. Sales management is pushing hard, and I am getting no support from my CFO on this. Any advice?

Answer: Yes. Indicate that since the customer has a deficit net worth and is therefore technically insolvent/bankrupt. Add that based on this issue and the other problems with the account that you cannot offer a larger credit limit. Inform your manager and sales management of your decision. If the sales manager calls, tell them that the decision has been made, and if they have any observations to take it up with your manager. If your decision is overridden, get management's instructions in writing.

spacer spacer