The Importance of Credit Checking and Credit Reports
Carrying out company credit checks on potential and existing clients should be an everyday part of business life however many companies are still leaving themselves open to the threat of bad debt by not carrying out such checks. Conducting credit checks through company credit reports will usually provide a credit score - allowing businesses to make better informed decisions about whether to extend credit. However whilst carrying out such checks sounds like common sense, less than a third (31%) of UK companies perform a credit check before trading. And this looks unforgivable when you consider that almost half (47%) of UK businesses have lost money in the last year when trading with another company.Whilst these figures are shocking, we'll now look at some of the other reasons why reviewing company credit reports and other credit checking tools is vital to ensuring your business' success....
Mistakes Happen: Check Your Bills Carefully
Whether you are an individual making purchases from a store, a manager signing off a vendor bill for payment or a business owner making payment decisions, make sure you check the bills before you pay them because mistakes do happen. This is not a matter of somebody trying to cheat you, but simple mistakes such as hitting a wrong key or forgetting that discount you negotiated when you phoned in your order.People generally do not try to cheat you, but even if they do they would be relying on you not checking. Many stores have a sign by the cash register: "Please check change before you leave!" That's not just because some try to claim to be short-changed, but also because some are short-changed because the cashier made a mistake....