Each month this column helps you learn how to close more deals and sell more stuff but in the case of a new customer, baby steps are the best course of action. As this individual makes their weekly payments on time without a hassle you can slowly increase their credit limit. Beware of the customer who finances small purchases repaying promptly and then goes for a major tool storage or equipment purchase borrowing thousands. This is the standard tactic of a conman and professional skipper.

Life-changing events affect your customers’ ability to repay. A major family illness can severely hurt a customer’s cash flow; a divorce is a huge life-changing and financial event — be alert to these circumstances too.

Keep an eye on your customers’ spending habits. You call on technicians every day and should have a good understanding of their income potential in the facility where they work. If your customer is working where the normal income is $60,000 to $75,000 and they’re driving a new Suburban and riding a Harley and also have a boat and a nice house, they could be up to their ears in debt!