Offering credit for retail sales (that is, to final customers) is ill-advised, unless the customer is an established business that wishes to distribute the books to employees or clients. Others should pay with a credit card or other means that moves the credit risk away from the publisher.

Retail book stores are _especially_ dangerous credit risks. Often, financially unstable retail stores will order direct from (small) publishers because they are possibly on “prepay only” with the large distributors. It’s almost always a red flag when contacted by a retailer who could otherwise order your book from Baker & Taylor or Ingram Book Group. (After all, both B&T and Ingram offer order-size incentives that can increase the retailer’s discount if they can meet order size requirements, etc.)

Unscrupulous retailers understand that it is a lot of trouble and expense to attempt collection for a small order — and is even more difficult when it must be done across state lines. So a small publisher is quite unlikely to pursue collection of a $50 order. But Ingram or B&T will most certainly attempt collection of typical bookstore orders in the thousands of dollars.

One hint, in running a small business that had a lot of customer accounts, those who talk about their “good credit” are usually the ones most seriously in danger of defaulting. Those who actually have good credit, rarely even mention it.

It’s one thing to make a sale … but you also must be paid once the sale is made.