Covering Business Credit

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Doctor Credit

What can I tell salespeople when they ask why a new applicant did not qualify for open account terms? Saying the obvious – that customer did not qualify is not satisfactory but I am reluctant to reveal anything controversial or confidential.

Answer: We suggest starting by explaining there are things you cannot discuss because of confidentiality rules – and then explain in general terms why you refused to extend credit. Example: I rejected the applicant based on their financial condition, and payment history with other creditors.

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