A u g u s t 2 0 1 4 / Q U I C K P R I N T I N G 29
w w w. M y P R I N T R e s o u r c e . c o m
given at 45 or 60 days. As a side note,
consider offering the electronic payment
option to large accounts overall. There is
no cost to the client and the check run
process is conveniently eliminated.
A number of printers suggest engaging
salespeople in collection activity, using a
claw back on commissions approach for
late or no pay accounts. This approach
can be a slippery slope. When there's a
problem or paperwork issue, they may
be best equipped to clear it up, but hav-
ing them be the point person regarding
the collection of delinquent account can
be risky.
Taking calculated credit risks has always
been a part of growing your business, just
as timely collection of receivables has
always been critical to maintaining posi-
tive cash flow. The need to make business
decisions hasn't changed, but the credit
parameters under which you operate are
now significantly tighter. The decision to
extend credit to risky new customers or
to delinquent established customers can
be made on a well-informed, case by case
basis, and only in light of what level of
risk is acceptable for your business in this
economy.
So do your credit research thoroughly,
and set payment terms to minimize
credit exposure. Being proactive up front
(and throughout each job) is the best
way to minimize collection issues later.
It doesn't benefit you to take a job that
doesn't pay. ◗◗
Margolis Partners has long been recog-
nized as the financial expert for family-owned
businesses with a specialty in the printing,
packaging and allied graphic communications
industries, assisting thousands of companies
with strategic and financial management,
valuation, mergers/acquisitions, accounting,
audit and tax services. The firm is noted for
its expertise in enabling companies to optimize
profits. Proudly, it is the purveyor of the indus-
try's Value-Added Principles of Management,
and compiles the annual Printing Industries
of America Ratios, the printing industry's pre-
mier financial benchmarking tool.
For more information, visit MyPRINTResource.com/10113742