Downloadable

Evaluation 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:

Evaluation form

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?*
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Name
Phone*
Email*