Why don’t more companies establish a sound credit and collections policy and stick to it?

Creditors’ Rights 15

A: Many businesses are afraid of having a rigid credit and collections policy. This is because
the business owner is afraid that asking for money that is owed will make a customer or client
upset or angry. But a business owner must realize that chasing clients for money is a time-consuming activity, and a good credit policy should reduce the number of customers with payment problems. One thing is for sure, the longer you wait to try to collect the money you’re owed, the less chance you have of ever getting paid.