CBMC Forums Focus: A weekly blog to enlighten, encourage and equip Christian business leaders to lead in business using Biblical Business Principles.
Biblical Business Principle
Last week we focused on a basic business principle from Business By The Book – Biblical Debt Warnings. Do you keep the dangers of debt at the forefront as you make business decisions?
This week we will review Financial Principles (Lending). Do you consider your company to be a lending business? Probably not unless you’re in a financial firm; however, unless you are paid in full every time someone buys your products or services, you are in the lending business.
- Make every decision in light of your purpose to glorify God through your business.
- Extending credit (lending) is a decision that requires wisdom from above. But the wisdom from above is first of all pure. It is also peace loving, gentle at all times, and willing to yield to others. It is full of mercy and the fruit of good deeds. It shows no favoritism and is always sincere. James 3:17 NLT Extending too much credit in order to make the sale can be detrimental to your business. Since you are responsible to pay your creditors even when you don’t get paid, think carefully how much credit you extend and to whom. Limit your lending to those who are faithful. Don’t extend credit to those who are already over extended. Money is only a part of their problem. Don’t extend credit to those who will be further damaged.
- Keep open communications with your customers, especially on receivables.
- Too much credit predictably results in bad debts in your accounts receivables.
- If you use a collection company, they represent you. Are they God honoring in their methods?
- 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 for them to have.
- Have very clear policies on lending to employees; perceived favoritism undermines morale.
How do you collect bad debts from the public at large?
- 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 only 5% your fault.
- 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 per Micah 6:8.
- Take it to the appropriate authority for impartial judgment.
How do you collect from a fellow Christian?
- 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. If you facing such a situation, also read 1 Corinthians 6:1-12.
Do you see yourself as a lender as 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?
Did you read Deuteronomy 28 last week? If not, invest a few minutes. Is it applicable for today?
Bit of Wisdom
And we know that God causes everything to work together for the good of those who love God and are called according to his purpose for them. Romans 8:28 NLT
Forums Ministry Business By the Book Workshops are an excellent way to learn and review Biblical Business Principles. Have you hosted a Business by the Book Workshop at your company or church?
BBB Groups help graduates of Business By the Book Workshops and Seminars apply Biblical Business Principles.
Forums Groups help one-another resolve difficult business issues using Biblical Business Principles through prayer, counsel, support, and accountability in a confidential closed group environment.
Business Leadership Forums are periodic events where business leaders share how applying Biblical Business Principles has impacted their business.
Forums Focus past issues are available online at https://cbmcmd.wordpress.com
Paul Lantz, CBMC
Office & Cell 941-705-6277