The current environment is much more difficult for start-up companies. Time spent hunting for delayed payment is cited as the biggest barrier for customers of business startups in front and not having resources available to recover the money owed is one of the most common reasons for errors in startups.
A large number of debt is due to the start-up from people or companies whose identity is unknown. It is essential to know who are the customers and credit for effectiveness of carried out inspections on both companies and their directors.
In addition, financial situations can change rapidly so it is important that companies regularly review your credit limits and watch out for signs that their clients might be in financial trouble. While many companies are not able to have an internal management system of credit is crucial that credit control processes are in place so problems are quickly identified and implemented.
Top 10 tips for the credit check
1. Always perform credit checks to ensure you know your customer
2. Get the customer to complete a credit application form
3. where can I get a personal guarantee from executives
4. Get a signed contract incorporating these terms and conditions
5. Give a customer credit limit and regularly this review
6. payment on time and ensure that the data are accurate
7. phone customers before payments are due to ensure that there are no query
8. Send monthly statements
9. Use correctly written letters together
10. consider the account does not pay a reliable outsourcing debt Agency