Common customer statement that should be a red flag for Collections
If customers come to you looking for a credit increase because their banks “just aren’t lending right now,” you have a good reason to be wary.
Granted, there’s a widespread belief among businesses that the majority of financial institutions aren’t doling out loans right now. However, there’s some new research out there that goes a long way toward discrediting that assertion.
In fact, 2011 saw a 10% bump in commercial and industrial (C&I) bank loans to business customers — according to stats from American Banker.
What’s more, that’s the first time since 2008 C&I loans have seen an increase.
So if your customers swear they can’t get any funding from their banks, it may be due to their overall financial health. In these situations, it doesn’t hurt to have your Collections staff ask for assurances — like a personal guarantee — from the customer.
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