Rinse and Repeat - Check Company Credit Regularly
In business things can change quickly, one minute the world is your oyster, the next things can quickly go downhill. Many buoyant businesses which look strong and healthy can have their fortunes change quickly in this economic climate.
In our last post we discussed how to help ensure your payments were dealt with quickly, and improve your cashflow. Late payments, excuses and underpayments can be signs of a company in trouble, and are definitely things to have your accounts department look out for. Many accounting packages will show the average payment time of your client, and help highlight any anomalies, also setting realistic credit limits in your package and setting alerts so you know quickly when a customer is over their agreed limit.
Late payments with one supplier, could be missed or defaulted payments with another, all depends how important your service/product is to the client, so its worth checking regularly for CCJ's to see if your client has had any judgements.
Sometimes you need to say enough is enough and suspend the service or stop proving goods to that client, for many companies this is a wake up call, but its wise to be firm and not backtrack once the decision has been made, as this may show a weakness that can be exploited. In many cases this will lead to rapid payment, if not its time to call the debt collectors in, they can advise on the best way to get your money, and what to do if it doesn't materialise. Many work on a 'no win, no fee' basis and can be great risk free way to try and recover overdue monies. Alternatively before you even get to that stage, credit insurance can help cover you from any risk by effectively 'insuring' invoices to make sure you are paid, if the client goes under the insurer will pay you the monies due, however they will charge a premium for each client depending on the risk involved.
A company credit check will show any CCJ's and a recommended credit limit based on the latest accounts and information available about your client. By performing regular checks on your keys clients, you can see their recommended credit limit history and be alerted to any potential issues before they affect your company. Regular checks of key clients can help protect you from bad debts and manage your risk with all clients.
Written by Sales Director at CheckMyClient - This article is based on 11 years experience of running small businesses with sustained growth over that period. Company Credit Checks have been very helpful in managing clients credit, you can get an instant company credit report online at checkmyclient.com.
In our last post we discussed how to help ensure your payments were dealt with quickly, and improve your cashflow. Late payments, excuses and underpayments can be signs of a company in trouble, and are definitely things to have your accounts department look out for. Many accounting packages will show the average payment time of your client, and help highlight any anomalies, also setting realistic credit limits in your package and setting alerts so you know quickly when a customer is over their agreed limit.
Late payments with one supplier, could be missed or defaulted payments with another, all depends how important your service/product is to the client, so its worth checking regularly for CCJ's to see if your client has had any judgements.
Sometimes you need to say enough is enough and suspend the service or stop proving goods to that client, for many companies this is a wake up call, but its wise to be firm and not backtrack once the decision has been made, as this may show a weakness that can be exploited. In many cases this will lead to rapid payment, if not its time to call the debt collectors in, they can advise on the best way to get your money, and what to do if it doesn't materialise. Many work on a 'no win, no fee' basis and can be great risk free way to try and recover overdue monies. Alternatively before you even get to that stage, credit insurance can help cover you from any risk by effectively 'insuring' invoices to make sure you are paid, if the client goes under the insurer will pay you the monies due, however they will charge a premium for each client depending on the risk involved.
A company credit check will show any CCJ's and a recommended credit limit based on the latest accounts and information available about your client. By performing regular checks on your keys clients, you can see their recommended credit limit history and be alerted to any potential issues before they affect your company. Regular checks of key clients can help protect you from bad debts and manage your risk with all clients.
Written by Sales Director at CheckMyClient - This article is based on 11 years experience of running small businesses with sustained growth over that period. Company Credit Checks have been very helpful in managing clients credit, you can get an instant company credit report online at checkmyclient.com.
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