The old adage “credit where credit’s due” is useful to keep in mind in business, when taking on new customers or when existing clients show signs of a change in status.
If you carry out work for customers before invoicing them for payment later, you are effectively extending a line of credit to them.
Where the sums involved are significant to your income, or sizeable in their own right, it is wise to carry out credit checks before you allow your clients to receive goods or services.
However, many companies fail to do this – often due to fears about the cost of credit-checking new clients, or simply because they don’t realise it is good practice.
We believe proactive credit checking is essential as part of a comprehensive approach to credit control, and can prevent the need for debt recovery services later on.
As such, for the month of February, we are offering background checks for £10 + VAT, giving you an opportunity to get your credit checks up to date on new and existing clients.
In particular, make sure you carry out an updated credit check on any existing client who has paid promptly in the past, but has become slower to settle their debts more recently.
These changes in status are often an indication of something more serious taking place within the company’s finances, so prompt action to identify any cause for concern is a sensible measure to take in order to protect your own interests.