12 . Terrace Review — Wednesday, April27, 1988 Business Beat - A credit ‘system for | small businesses The ready availability of credit — the ability to obtain goods and services in day. For most businesses, the willingness to grant credit is important to their growth; for many, it is essential to their well- being because their competitors offer it.. The advantages to both buyer and by Phil Hartl Manager, Terrace _ seller are real. The principal benefit to creases sales. For the buyer, it is conven- ient and may enable him to. purchase more. Development Bank ‘The principal disadvantage for the seller is cost, since payment , is not received immediately but the bills for producing the pro- duct must be paid. Greater amounts of capital must be available than would be required by a business operating solely on a cash basis. Other costs not faced by a cash business are those involved in determining which customers are worthy of credit; in maintaining records of amounts owing, billing and collecting; and bad-debt expense. A number of basic factors must be weighed in reaching a sound decision on granting credit, and rules must be established, Decisions must be made on terms to be offered and limits which will apply, on discounts allowed for prompt payment, and on action to be taken when accounts become overdue, and the in- terest rates to be charged them. All of these are important because the future of the business is at stake when they are made. Each customer, whether a firm or an individual, must be evaluated in a sound, systematic way using the three C’s of credit — character, capacity and capital. Of these, character is foremost — the intention and, most important, the willingness to pay. There should be a well-designed questionnaire for credit ap- plicants — name, address, occupation, length of time at present address and frequency of moving, amounts and sources of in- come, financial obligation, bank account and credit cards. Good judgement in analyzing credit risks is vital for successful credit management. If good risks are declined, or poor ones ac- cepted, the business will suffer. When a credit application is accepted, the terms under which it will be granted should.be explained clearly to the customer. In most cases, a limit should be specified so that credit will not ex- tend beyond the customer’s ability to pay. Just as a credit granting policy is important, so is a credit col- lection policy, applied consistently and fairly, because the paid-up customer can buy more and prompt payment eliminates expenses caused by slow payment. ~ return for a promise to pay in the future | — has gained widespread acceptance and is a major factor of our economic life to- The Kinsmen Club cf Terrace meets the first and third Thursday of every month, For further information, call Steve Mclsack at 638-1974. - Are you interested In joining an Alzheimer Support Group to meet and glecuse similar difficultles and possible solutions? Please contact 635-3178. The Contract Bridge Club plays bridge every y 2nd Thursday evening from 7:30 - 10 p.m, All Interested players, please contact Elaine Johnson at 635-2065. Planning A New Paul Williams, Phil Hortl, 1 Wiis | t Manager Busi n ess Developmen and You Need Advice? Ask About Our Very Reasonably Priced “IN HOUSE" Business Start-Up Counselling Another Product of: CASE Business Services 4641 Lazelle Avenue, Terrace 695-4951 BACKING INDEPENDENT BUSINESS Federal Business Banque fédérale | Development Bank de développement _TERRACE BUSIN NESS G GUIDE "ORGANIC "CUSTOM CABINETS SASKATCHEWAN AND FURNITURE Oak — Pine — Birc WHEAT ‘High quality — Low price Top Quality, Cleaned & Bagged , Free Estimates Fairhaven Bakery Installation and dalivery Included Kitwanga, B.C, | Falrhaven Cabinet Shop . 849-5673 The Adhred Fueonal Howe Std. | Dedicated People, Understanding ¢ Need Directors — Alf & Jeanette DeFrane 4727 Park Avenues, Terrace, B.C.. 24-hour call — 638-8319 Pamphlets available for Memorial Markers and Bronze Plaques poets KALUM ELECTRIC Major Appliances: (also available at Dynamic Health Service) Kitwanga, B.C. West Coast | Chimney Service Clean Chimney Maintenance Dealer for: . FINGARD CHIMNEY FIRE EXTINGUISHERS . 635-9557 Pro TECH ELECTRONICS 4519 LAKELSE AVE., TERRACE 635-51 34. Frigidaire Electrohome ‘Westinghouse Quasar T.V. Complete electronics repair services Sales & Service VCR Parts Depot We service for all makes all makes Kalum Electric Ltd." iste Service centre for most major brands Satelite TV systems CONTRACTING Residential — Commerciat Your complete source for all # your heating o falconios © Root Docks needs. yurcoveal™ = plurchdek™: duradel , Northwest Consolidated “Waterproof Viny! Floor Covering" Suppy Ltd. 5238 Kelth Ave., Terrace 635-7158 43916 MOUNTAINVIEW AVE. 635- 5859 (TERRACE B.C TO Specializing in - “SP : BUSINESS SERVICES bean and” # VOICE PAGERS » PHOTOCOPYING Transmission. t: 24HOUR ANSWERING SERVICE Repairs 638-8195 North Coast Auto _ #1-3238 Kalum St., Terrace, B.C. VaG 2N4 Repairs Lte BaSe0e7 Dr. Terrace: Inflatable Boat Repairs #, @ Durable — High Quality te, a” Vulcanizing Repairs #9, < rr) We specialize in Conveyer Belt 0, 6 ' Installations, Splicing, and Repairs, & 4 Vulcanizing and Pulley Lagging. 24 HOUR SERVICE HI-QUALITY BELTING & - -CONTRACTING SERVICES | 638-8530 638- Auto Glass Specialists ICBC claims handled promptly 638-1166 “MERC CRUISERS x MARINER OUTBOARDS HAMILTON & OUTBOARD MARINER JETS HOMELIGHT LAWNMOWERS TERRACE LTD. 4711-A Kelth Ave. - Industrial . 638-1876 Commercial& ™ , ra one os ing’) (> YAMAHA SHINDAIWA CHAIN SAWS Wiring DL No. 7550 & POWER PRODUCTS © -KEN’S MARINE eesti ati atti ati 4946 Greig Ave. Phone: 635-2909 B&G GROCERY Laundromat & Carwash Open 8:30 - 10:30 daily 2701S. Kalum 835-6180 Nate’s Electric Nathan Waddell — Electrical Contrector 4851 Lazelle Ave., Terrace %_ Nlanfrberg AR Cabinetry | he” (604)638-1437 ¢ Face Frame & Europa Style Cabinets ‘ Cedar Windows and Doors . .* Commercial & Residential Cabinetry Bornite Mountain Taxidermy For a Professional Look A Terrace 7 is '1) Tree Trimming 7 :.5 ‘ ; Will cut down any tree! L_ “SAFELY” 51,000,000 liability for YOUR protection 635-7400 Specializing in Blg Game Mounts & mugs We mount fish and birds as well ' Box 23, RR. 2, Terrace, 8.C. V8G 329 Peter Martinson 635-5777 Terrace, B.C. Sales and Service for Motorcycles * Chainsaws | * .- Snowmobiles * Marine Supplies _ TERRACE EQUIPMENT SALES*=LTD. _ 4441 Lakelse Ave., Terrace Ph. 606-6004 ee a