Muller Law Firm Explains the Importance of Documentation in Credit and Collection
Michimich.com/10246858

BIRMINGHAM, Mich. - Michimich -- Do you keep thorough notes on your credit customers?

How often do you review credit information with your clients?

You can help keep the odds in your favor by insisting on good documentation throughout the credit and collection process. Good documentation begins with a credit application, which is required before your first sale on credit to any customer.

Review Credit Information for Existing Customers

Beyond requiring credit applications, you should periodically review credit information for all your customers. Depending on your industry and your history with the customer, you might review credit information every six months or once a year, but even with established customers, you don't want to go beyond a two-year review schedule. In between reviews, update your customer's credit data whenever you come across new relevant information.

You can avoid a lot of difficulties with defaults if you monitor your clients for changes in their business and financial health. For example, if you find out that a customer's business has new ownership, or that the owners have formed a new but similar company, it may be time to thoroughly recheck that customer. Sometimes your clients really don't want you to find out about changes, and that's a reason in and of itself to recheck them.

More on Michimich.com

• New Leadership and Renovations Usher in Next Chapter for Sunrise Manor
• Who Will Win the 2025 WNBA Finals? OddsTrader Shares Live Betting Odds and Projections
• Geeks5g Creative Marketing: The Powerhouse Behind Business Growth
• Two new inductees selected to the Trenton Educational Foundation's Wall of Fame
• Agemin Unveils Breakthrough AI Model for Biometric Age Estimation, Setting New Standards in Online Child Safety

Interview New Customers and Keep Records

If a customer won't take the time to fill out a credit application, and you choose to extend credit to the customer anyway, you can protect yourself. Make sure you interview that customer to obtain the information you need to determine creditworthiness and to use as a resource if the customer's paying habits deteriorate. If you interview the customer by phone, keep a recording of the call (but be sure you can legally record the call under the laws of your state), or write the answers down on your standard credit application and add the completed document to the client's credit file.

Problems often arise when you act without enough information to accurately assess creditworthiness. If you enforce your credit policies and get the documents you need now, you avoid problems later.

Read this article on our website: https://www.mullerfirm.com/learnmore/documentation-in-collection-services-michigan

More on Michimich.com

• Strategic Partnerships with Defiant Space Corp and Emtel Energy USA Powerfully Enhance Solar Tech Leader with NASA Agreements: Ascent Solar $ASTI
• 120% Revenue Surge with Four Straight Profitable Quarters Signal a Breakout in the Multi-Billion Dollar Homebuilding Market: Innovative Designs $IVDN
• Leading Venture Capital Firms Recognize Wzzph Exchange's Technical Architecture and Security Framework as Industry Benchmark
• DivX Unveils Major DivX Software Update: Seamless Video Sharing and Customizable Playback Now Available
• Nespolo Mechanical Helps New Mexico Families Save Thousands on Heating Costs This Fall

Resolve Debt with Michigan Collection Services

To protect your creditors' rights, make use of their collection services in Michigan! Call (248) 645-2440 for an effective resolution to your collection matters.

About Muller Firm: Located in Birmingham, Michigan, Muller Firm P.C. is a family practice handling debt collection in Michigan for in-state, out of state, and international judgments against debtors. Their debt collection experts fight for creditor's rights no matter how big or small the amount of debt. Call today for help with your collections! www.mullerfirm.com