I work for a collection agency in California. I was responsible for collecting rent from the subtenants. They face not only fewer customers generating income, but also suppliers. The key to collections is information. I have learned that during tough economic times. I have been in the banking/finance arena for some time now.
Recently we teamed up with a financial company that allowed us to put customers on a payment plan. My challenge at that time was to recover dues from the owners or landlords. My challenge at that time was to recover dues from the small businesses have been hit.
They should be able to weed out obvious credit risks by evaluating the potential clients financial statements, bank statements, trade references, etc. They are a good way to stop a problem before they start.
If not, it's at least the first step in severing that relationship. It always better to terminate your business with a bad payer sooner rather than later when that client as bilked you out of more money.
