Request prepayment for the first order, cash on delivery for the repeat order, and net 30 days the third order. DO NOT PERMIT AQGED RECIEVEABLES! Hold delivery on follow on orders when recieveables past 30 days. Have salesman deliver a message that you are holding shipment pending reciept of payment. SMILE WHEN DELIVERING MESSAGE. INDICATE APPRECION FOR PREVIOUS

PURCHASES AND YOU ARE LOOKING FORWARD TO FUTURE BUSINESS.

Another way would be to verify their credit standing. Dun and Bradstreet or another reporting agency will tell you how the business pays and if they are deliquent with other vendors. That might help ease worries or give you a reason to explain why you might not extend credit.

The first answer to the question was quite harsh and might turn off some good paying accts. The second answer was better, however alot of smaller, good payers do not give info to D&B (especially privately held companies). The best way to proceed would be as follows: Ask the customer for their Bank w/ Acct No. and Name of Mgr. Next, ask for three current vendors that they are doing business with (their phone/fax nos. and person to speak with). Call the Bank - they will talk to you and tell you how many 'figures' are in their checking acct. (ie. 4 figs., 5 figs., etc.). You will have to fax the vendors (they won't talk to you). They WILL send back your request. Ask for length of time doing business,
customer credit limit, history of pymts., current amt.?, good acct./bad acct.?....etc.......