home_business Directory

home_business Articles

WRITERS WANTED! (click-me)

Feature Article:

How To Help Your Kids Learn Important Life Skills Through Your Home Business
Would you like to find a willing, enthusiastic source of free or very inexpensive labor for your Internet Home Business? Would you like to find a fantastic way to help your children learn things like self discipline, goal setting, integrity,...
...Read More

Pay Per Click for Your Work at Home Business
Pay per click is seemingly a simple way to market your work at home business.  Pay per click is an advertising tool that works just as it sounds.  Major search engines like Yahoo! and Google allow you to advertise on their search engine...
...Read More

Extending Credit in Your Home Based Business


Whether or not you will be extending credit to your customers in your home based business is a decision you will eventually have to make.  Every business owner will have to write off between 3 and 5 percent of debt as bad, as long as debt is managed correctly.  If you have just started your home based business, cashflow is very important, and so you do not want to necessarily turn potential business away just because you think if you go extending credit you will not get paid.  There are ways to help you determine whether or not you should extend credit in your home based business.

Some home based business owners have a strict policy regarding up front payment or even pay upon delivery payments.  However, if you want to keep your business competitive, extending credit is one way of increasing business.  Extending credit, though, does not mean you do it willy-nilly to anybody who wants it.  After all, some services or products are worth a lot of money, and not getting paid can cost your business significantly.

Therefore, you need to take some specific things into account when you are considering extending credit to a client.  First, take a look at the character of your client and their overall willingness to pay debts.  What is their history and your experience with their management?  Is there a history of unpaid debt or litigation?  Taking a close look at the client can help you determine whether extending credit is in your businessís best interest.

While you are taking a closer look at the character of the company when determining whether or not you will be extending credit to that client, you should also take a close look at the financial capacity of the company.  The companyís character tells you if the company will be willing to pay, but looking at the financial capacity will tell you if they are able to pay any debt. 

When you are considering extending credit to a particular client, finding out the character and financial capacity of the client comes easiest from having them fill out a credit application and running a credit check.  Beware of extending credit to those clients that balk at filling out a credit application, as most reputable clients will understand your concern.  Also, double check credit references on the application before you go extending credit to your client.

Your policy on extending credit is important here, as you need to know what to do with the information you get from the credit check.  You need to know how much negative information makes you uncomfortable enough to not extend credit to that client, and if you will be requiring pre-payment in full or just partial payment.  Also, if you do decide on extending credit to the client, then you need to make sure the payment terms are very clear. 

Read the rest of the article here: Extending Credit in Your Home Based Business.

Download the Free Quick Start Workbook (Free $97 Value!) and receive valuable tips, strategies and techniques designed to grow a very successful Home Based Business.

Copyright © Charles Fuchs is an established Six Figure Income earner and one of the top online marketer's. He specializes in helping people start their very own Work at Home and Home Based Business on the internet.

I grant permission to publish this article, electronically or in print, as long as the bylines are included, with a live link, and the article is not changed in any way.


Copyright © Charles Fuchs is an established Six Figure Income earner and one of the top online marketer's. He specializes in helping people start their very own Work at Home and Home Based Business on the internet.

More Reading:

Get Over Your Fear Of Losing Money To Succeed At Any Home Business

How To Cope With Your Home Business And Your Daily Tasks

Starting A Home Based Business Are People Really Making Money

Choose a Host that matches your Home Business needs

5 Essential Traits Of A Home Business Website

Important Online Home Based Business Tools

Marketing Your Home Business on a Tight Budget

The Two Main Factors For Success In A Network Marketing Home Based Business

A Home Based Business Intro

What is MLM and Can It Be a Valid Home Based Business

home_business Home

home_business Directory

Additional Reading

The 9-to-5 Home Business Tug of War
The 9-to-5 Home Business Tug of War © 2002 Elena Fawkner Perhaps the scarcest commodity the new home-business owner just starting out has is time. This is particularly so if you are also working a traditional, full-time job and building up...
...Read More

Why Use Our Own Judgment When Marketing Our Work At Home Business
If you spend anytime you've certainly become aware of the word "Marketing Guru". This title is sometimes freely applied to those that have had some success in their own home business, making them perhaps somewhat more savvy than those just starting...
...Read More

Setting Up A Home Business Office
If you are starting a new home based business, one of the first requirements will be that of a home business office. Many people make the mistake of not having a separate place dedicated to their home based business affairs, and then have to...
...Read More



Internet Search for: credit, extending, home_business