In order to better understand why customer’s sometimes don’t pay, it is helpful to understand the concept of the cost of credit. , There are four basic costs of credit that businesses should consider when developing a credit policy which will aid in understanding why a customer doesn’t pay, and thus enable a business to prevent some of these situations. , Topics covered in this learning module include The Costs of Credit, Reasons for Non Payment, “Real” Reasons for Non Payment, and Bad Intentions. , After successful completion of this learning module the student should understand what the four costs of credit are and how they impact a business, the concept of the Payment Gap, the concept of the Red Zone , the reasons that customers don’t pay and customers with bad intentions..
Robert S. Bernstein is managing partner of Bernstein Law Firm, P.C. , He serves as counsel to commercial landlords, equipment lessors, bankruptcy trustees, creditors' committees, creditors, and reorganizing businesses in proceedings throughout Pennsylvania and the Middle Atlantic States, concentrating in the many facets of bankruptcy and commercial law. , Mr. Bernstein writes and lectures for local and national groups on matters of collection, bankruptcy, business law, and professional ethics and, for more than ten years, has been certified as both a creditors' rights and business bankruptcy specialist by the American Board of Certification. , Mr. Bernstein earned a BA from the University of Pittsburgh in 1976 and a J.D. from Duquesne University in1981.