Knowing Your Customer
- Check out the exact name and legal status of the business you’re supplying. If it’s a sole trader or partnership, the proprietor or partners are personally liable so make sure you have their full details. Businesses can disappear much more quickly and easily than individuals! For limited companies you can undertake a free check on a limited company’s basic details using the Companies House WebCheck service.
- Don’t be afraid to push for all the information you need – if you can’t get it now, it will be far more difficult later.
- Watch out for ‘friendly’ references that the potential customer gives you. Referees that you choose are far more effective.
- Invest in credit reference information – it could save you a bad debt.
- Set some rules that you (and all your employees) always follow and don’t be tempted to break them, even if you’re put under pressure to supply urgently.
Detailed and accurate information about your customers will assist you when applying for external financing.
Have corporate clients, who pay 30 – 90 days later?
Your business could benefit from Accounts Receivable Financing through Invoice Discounting or Factoring. Please fill out a request form or call us on 0208 969 4455 for a no-obligation chat today.