If you are a B2B company, then you rely on trade payments to survive. Unfortunately, late payments have become an accepted part of the credit control process; this shouldn’t be the case; late payments should be avoided where possible and fought. To go some way towards eliminating late payments some businesses are implementing an obligatory credit check into their collection policy, but can a credit check really make a difference?
Credit checking a potential customer provides you with all of the information that you need about their finances details like credit limits, credit ratings and how many days over terms they pay their bills. This information can help you when deciding if to trade with a customer or to request a deposit before work commences.
Don’t be under the illusion that credit reports can only be carried out with new customers; you can check any of your existing clients. We understand how damaging it can be to your business if a customer files for insolvency, a credit report can keep you updated with any changes or irregularities in your customers’ financial behaviour. Once a company is insolvent, it is nigh-on impossible to collect any money that is owed to you. Court can be a lengthy process, and there is still no guarantee that you will be paid what you’re owed. By using a credit report, you can gain an insight into your client’s payment history, and if it is troubling, you can cut your losses and avoid losing a lot of money.
In some circumstances, information regarding the directors can be as useful as the company’s payment information. If a company has had several changes of director recently, this can indicate that something deeper is going on and trouble may be brewing. Similarly, if an investment company have been brought on board, this can mean problems with their finances.
At Commercial Domestic Investigations, we understand how important your customers are to your business, but we also know that a stable cashflow is vital for survival. We offer a credit reporting service so that you can trade with your clients, without worry that you will not receive a payment. If you are struggling with bad payers, then our team can help you to recover any debt; if you want to discuss how we can help your business, contact our team on 08444 159200 or email firstname.lastname@example.org.