Would you lend money to someone you didn’t know?
You’d be surprised at how many businesses do.
Thousands of businesses are so keen to get work or make the sale that they don’t consider who it is they are giving credit terms to. If a really good friend of yours needed to borrow some money you may help them out because you know them well and know that the money will come back to you very soon, but if you were stopped in the street by a complete stranger with the same request you certainly wouldn’t do it.
Can They Pay? Will They Pay?
With the creation of a Credit Application Form which incorporates your Terms and Conditions of Trade you can easily perform at least perfunctory checks and, if necessary, in-depth checks on your potential client quickly to see if they are the sort of customer with whom you want to do business, BEFORE YOU SELL TO THEM.
If all of this is too onerous a task the outsource the job.
- Designing your Credit Application Form
- Drawing up your Legal Terms of Trade (please never use “off the peg” forms they are pretty useless if you need to rely on them in court. Always opt for bespoke forms which we can provide for you)
- Assessing each Application
- Performing credit checks
- Reporting the Findings
And all within a matter of hours once the documentation has been set up for you.
Whatever you do, make sure you DO SOMETHING and don’t leave it to chance.