Payment is slow, credit is tight and bad debts are seriously on the rise. Yet, many companies continue to ignore the problem, spending more on things like coffee and tea than protecting their business from going under.
Every customer who has an account with you, or new clients who buy on credit, pose a potential threat to your business and should be subject to a credit check, the cost of which is tiny compared to what just one bad debt could do to your bottom line.
Remember, it might only take one bad debt to ruin your bottom line and send you out of business.
And it could easily come from one of your existing clients. Good client companies that you've being trading with for years could turn bad overnight if you're not careful.
A credit check of every new customer, as well as regular checks of existing customers, should be part of your routine business practice, particularly in the current economic climate.
The cost of a credit check is small and it could save you thousands of dollars.