Knowing your customer and why credit checks are vital

  In the recent months we have seen some established companies go into liquidation. 90 year old companies that you would have had no hesitation in opening an account with an unlimited credit limit probably without credit checking them because of their size and status are now in liquidation.   It is key to creditRead More

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In the recent months we have seen some established companies go into liquidation. 90 year old companies that you would have had no hesitation in opening an account with an unlimited credit limit probably without credit checking them because of their size and status are now in liquidation.

 

It is key to credit check your existing clients on a regular basis. You may have a long standing client that you think would never default, however their payments are becoming increasingly late and you are finding that you may have to ring them or send them reminder letters something you have never had to do in the past. This is one of the first signs that the company may be experiencing problems and preventive measures are essential.

 

You may feel uneasy about carry out a credit check, but take a moment to ask yourself why? If you went to any high street store they would not entertain opening an account without first carrying out a credit check. If your prospective new client shows concerns with regards to completing an application form and having a credit check ask yourself why.

 

If you have any questions call Cash Protection Agency on 0116 2688965 to discuss company credit checking options which may be available to you.

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