Recognizing—And, If Warranted, Helping—a Customer in Financial Distress: Part 2

(See Part 1: Recognizing a Customer in Trouble.) Strategies to Deal with a Customer in Trouble Once the AR or credit professional determines that a customer is in financial distress, they must tailor their response to the specific circumstances. If the customer accounts for a small portion of your sales (and that situation is very unlikely to change), the range of options is simpler, including steps like the following: Tighten credit terms or institute a credit hold pending payment of…