A Useful Guide to Invoicing Customers

An invoice is a bill that sets the terms for payment for either a service or product sold to a wholesaler. By issuing an invoice to a customer, your business is extending credit to them.

Check Their Credit

From a legal perspective, you are extending credit because you are making an unsecured loan. It is a good idea to check the creditworthiness of a new customer that you are unsure of. You can ask them to complete a credit reference form.

The form should require information about who is in charge of the business, who to contact if problems develop, how much credit they applicant is seeking, other firms with which the company has done business on credit, and any other financial information you need to make your decision.

Evaluating the Risk

Putting all of your business into one large account is overwhelmingly dangerous risk to take. It is wise to keep your smaller accounts and not drop them for large order from one customer. Smaller accounts are more likely to be loyal and they provide a constant, reliable source of income.

A Well-done Invoice

It is very important to emphasize and make clear the statement of transaction and request that the customer contact you if there are any problems. Invoices typically require payment within 30, 60, or 90 days.

Speak with an Austin Debt Collection Lawyer

If you are a business owner and need advice or have questions about invoicing customers and debt collection, you need the help or an attorney who knows business. Contact the Austin debt collection lawyers of Slater, Kennon, & Jameson, LLP at 512.472.2431 today.