Evaluative Tool

Owners of staffing firms repeatedly ask, “How do I know if my staffing firm has a credit and collection problem?”  To respond, I asked our credit risk department at Adams, Evens & Ross to create a test to rate a staffing firm’s exposure to credit risk. The department was thorough and produced the following evaluative tool:

1. Do you have a written credit policy in place?: *
2. Do your new customers fill out a credit application?: *
3. Do you have safeguards, such as the right to charge interest, late fees, or collection costs, built into your credit application?:
4. Do you check the credit application?: *
5. Do you re-review the credit application every 6 to 12 months?: *
6. Do you write off more than 1% of your annual sales to bad debt?: *
7. Do you have a collection process in place?: *
8. Do you set credit limits?: *
9. Do you require Personal Guarantees to be used with companies younger than 3 years old?: *
10. Do you contact overdue clients before they are 30 days past due?: *
11. Do you file a UCCI to become a secured creditor on your accounts that have credit lines over $20,000?: *
12. Do you allow sales people to set credit limits and/or collect their own accounts?: *
13. Do you check public records for lawsuits?: *
14. Have you had more than one client file for bankruptcy within the last 18 months?: *
15. Do you have a liquidation clause on your timesheet stating that they owe a fee if they hire your temp?:
Name: *
Phone: *
Email:: *
Click here to listen to the various interviews from Wilson
 







  Whether you've been in the staffing and recruiting business for many years or just launched your business, "Revealed, Credit and Collection Secrets of the Billion Dollar Man" book by Wilson Cole, CEO, of Adams, Evens & Ross will literally save you hundreds of thousands of dollars. This book is an extraordinary gift to the reader.

Jessica Rareshide, CPC, CSP, Executive Director,
United States Staffing Association (USSA)