Forums Focus, a weekly blog to enlighten, encourage and equip Christian business leaders
Last time we focused on Financial Review: Surety. This week we will focus on Financial Review: Lending. Unless you get paid in cash for every transaction, you’re in the lending business. Is your lending consistent with Biblical Principles?
“Then the Kingdom of Heaven will be like ten bridesmaids who took their lamps and went to meet the bridegroom. Five of them were foolish, and five were wise. The five who were foolish didn’t take enough olive oil for their lamps, but the other five were wise enough to take along extra oil. When the bridegroom was delayed, they all became drowsy and fell asleep. “At midnight they were roused by the shout, ‘Look, the bridegroom is coming! Come out and meet him!’ “All the bridesmaids got up and prepared their lamps. Then the five foolish ones asked the others, ‘Please give us some of your oil because our lamps are going out.’ “But the others replied, ‘We don’t have enough for all of us. Go to a shop and buy some for yourselves.’ “But while they were gone to buy oil, the bridegroom came. Then those who were ready went in with him to the marriage feast, and the door was locked. Later, when the other five bridesmaids returned, they stood outside, calling, ‘Lord! Lord! Open the door for us!’ “But he called back, ‘Believe me, I don’t know you!’ Matthew 25:1-12 NLT
What does this parable have to do with accounts receivables? Let’s look at some principles. Half of the bridesmaids were foolish, half wise. As you extend credit, do you consider many are foolish? That fools have no reserves? That fools are quick to ask, slow to develop reserves? The wise had reserves because they were wise. God honors wisdom.
Principles from The Business By The Book Workshop
-Don’t be too eager to extend credit to make a sale, you might become another creditor of a failing business or individual.
-Since you are committed to timely paying your creditors, be careful you don’t extend too much credit. The world’s way is OPM (Other People’s Money).
-Limit credit to customers who are faithful in repaying.
-Do not extend credit to those who will be damaged by it.
-In collecting Accounts Receivables, are you collecting your money or God’s money? You have a right to money owed you, but your loss is more than money if you violate God’s principles in collecting it.
-Make every decision in light of your primary function – glorify God.
Bit of Wisdom
And this same God who takes care of me will supply all your needs from his glorious riches, which have been given to us in Christ Jesus. Now all glory to God our Father forever and ever! Amen. Philippians 4:19-20 NLT
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.
For additional information go to http://forums.cbmc.com or email firstname.lastname@example.org<mailto:email@example.com>.