A weekly blog to enlighten and encourage Christian business leaders to lead their business using biblical principles.
Business His Way
Biblical Business Principles – Last week we looked at Financial Principles (Borrowing). Are you the head or the tail as described in Deuteronomy 28?
This week we will review Financial Principles (Lending) from the Business By the Book Workshop.
1. Make every decision in light of your purpose to glorify God through your business.
2. Unless you are paid in full every time someone buys your product or service, you are in the lending business.
3. Lending through extending credit is a decision that requires wisdom from above. See James 3:17.
4. Extending too much credit in order to make the sale can be detrimental to your business.
5. Since you are responsible to pay your creditors even when you don’t get paid, think carefully how much credit you should extend and to whom. Limit your lending to those who are faithful.
6. Don’t extend credit to those who are already over extended. Money is only a part of their problem.
7. Keep open communications with your customers, especially on receivables.
8. Remember whose money it is – God owns it all. If your accounts receivable person is a Christian, collecting God’s money is a helpful perspective.
9. Have very clear policies on lending to employees; perceived favoritism undermines morale.
10. Make every decision in light of your commitment to glorify God through your business.
Too much credit predictably results in bad debts. If you use a collection company, they represent you. Are they God honoring in their methods?
How do you collect bad debts from the public at large?
1. Be sure the reason the customer is not paying is 100% them and not because you didn’t deliver per the agreement. Clear up deficiencies even if it is less than 5% your fault.
2. Speak with the debtor to determine all the circumstances why they are not paying. Try to avoid actions that will drive the person further from understanding true Christianity and receiving Christ. We are to balance justice and mercy. See Micah 6:8.
3. Take it to the appropriate authority for impartial judgment.
How do you collect from a fellow Christian?
1. Follow the 3 step procedure Jesus taught in Matthew 18:15-17. If another believer sins against you, go privately and point out the fault. If the other person listens and confesses it, you have won that person back. But if you are unsuccessful, take one or two others with you and go back again, so that everything you say may be confirmed by two or three witnesses. If that person still refuses to listen, take your case to the church. If the church decides you are right, but the other person won’t accept it, treat that person as a pagan or a corrupt tax collector.
Do you see yourself as a lender when you extend credit to customers? Do you take seriously your responsibilities to all parties as a lender? Are your policies and procedures on extending credit and collecting accounts receivables aligned with Biblical principles?
Bit of Wisdom
When you have something against another Christian, why do you file a lawsuit and ask a secular court to decide the matter, instead of taking it to other Christians to decide who is right? Don’t you know that someday we Christians are going to judge the world? And since you are going to judge the world, can’t you decide these little things among yourselves? Don’t you realize that we Christians will judge angels? So you should surely be able to resolve ordinary disagreements here on earth. If you have legal disputes about such matters, why do you go to outside judges who are not respected by the church? I am saying this to shame you. Isn’t there anyone in all the church who is wise enough to decide these arguments? But instead, one Christian sues another — right in front of unbelievers! To have such lawsuits at all is a real defeat for you. Why not just accept the injustice and leave it at that? Why not let yourselves be cheated? 1 Corinthians 6:1-7 NLT
Forums Ministry News
Join Bob Lawless, former Chairman, President and CEO of McCormick & Company, as he shares his experiences in applying Biblical principles of business at a Brown Bag Business Leadership Forum on Thursday, May 26, 2011 at the Community Christian Church, 8094 Sandpiper Ct, Suite G, in the White Marsh business community. Networking 11:30, Program Noon – 1:00 PM, Q&A 1:00 – 1:30 PM. Sponsors are CBMC Forums, Maryland Bible Society, and the Christian Professional Network. For reservations or more information contact Paul Lantz, email@example.com, 443/248-0377. Plan to attend and invite fellow Christian business leaders to join you.
Forums is now on the web. Go to http://md.cbmc.com and click Forums in the left column.
Is your knowledge of God’s business principles increasing and are you applying these principles in your business? The Business by the Book Workshop is an excellent way to learn and review these principles. To view the promotional video go to http://www.crown.org/cart/videos/BI277/BBTBMed.asp.
The Downtown Baltimore Business by the Book Workshop begins May 17th from Noon – 1:00 PM at World Relief. For reservations or more details email firstname.lastname@example.org.
A Workshop is in the planning stages for Bowie. If you have interest contact email@example.com.
Consider hosting a Business by the Book Workshop at your company or church? For more information email firstname.lastname@example.org.
For more information on Forums Groups go to http://forums.cbmc.com. If you’re interested in exploring joining a Forum Group, or know someone who might be interested email email@example.com, or firstname.lastname@example.org.
The Bel Air Forum Group is forming. If you have interest in this Forum Group, email email@example.com. The Metro North Forum Group is ongoing.
The Forums Ministry journey includes Business by The Book Workshops, BBB Groups, and Forum Groups. For more information email firstname.lastname@example.org or email@example.com.