Do I need to credit check my customers?

January 26th, 2012B2B Debt Avoidance Tips0 Comments

SGP have devised a simple rule to apply in making the decision whether or not to credit check.

1. Your start point is your current bank balance.

2. If your company could easily cope with a loss of £1000, then credit check those clients wanting more than this amount of credit.

If your finance are in jeopardy, all new applications for payment should be credit checked even if you build the cost into your first order.
Any applicant not wanting to be credit checked should immediately alert you to a potential or professional debtor.
You application for credit should include several questions to help you assess to risk with a new or existing customer.
You should also monitoring all your existing customers for warning signs of insolvency.
And don’t be afraid to ask for a personal guarantee

If you are unhappy with the information on the credit application then SGP can not only credit check your customers but we also provide help in all of the areas above concerning assessing risk in new customers. View SGP Full Services