Collecting Debt
Ken: Look at this list of customers who still Owe us money. How is this business supposed to survive if we keep Extending credit?
Marjorie: We started doing it because some of our best customers didn’t have Ready cash. They’re Good for it.
Ken: I know they’ll eventually pay their Outstanding debt, but what are we supposed to do in the meantime? We need that cash to buy stock.
Marjorie: We can Call in the debt and set a deadline for Repayment. We can give those who are really Hard up an Extension on a Case-by-case basis.
Ken: What if they still don’t pay? We’d have to turn it over to a Collection agency. We’d only get 40 cents on the dollar, but we’ll have to close our doors if we don’t collect.
Marjorie: Using a collection agency would be a Last resort. I’ll call each of our major Debtors and have a talk with them. I’m sure they’ll Come through.
Ken: I hope you’re right or we will be the ones asking for credit!
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