Doing business in the current environment is difficult enough without having to worry about getting paid. For non-retail businesses, where credit is expected by wholesale customers, there is nothing worse than providing goods and services only to end up with a bad debt.
For new customers, it is good business practice to carry out a company credit check to try and get some indication that the company with whom you will be dealing will be able to pay your bill. Whilst such a check is no guarantee of payment, a company credit check with a credit score provides some degree of comfort.
Even with existing customers, it is good practice to regularly check their credit worthiness as part of your credit control system. Diarising regular business credit checks is an important process for every business, however monitoring systems are used to do this automatically for you. It is a system that once you have added your desired companies will send details of any changes via email at the time change occurs.
Even if the businesses that you are dealing with do not leave you with a bad debt, delayed payments can cause almost as many problems particularly in an environment of limited finance. Additionally, it can of course cost you time and money in chasing outstanding amounts.
Every business should have a clear system to deal with credit risk and should involve credit limits, procedures for chasing debts, all in line with your terms and conditions of business.
Company credit reports help build such a system.
Creditserve offer differing packages to suit any and all requirements, so please feel free to visit www.creditserve.co.uk to view the differing services we offer.
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