Avoid Bad Debts by Using Free Company Information

Avoid Bad Debts by Using Free Company Information

What can be more terrible than a customer or company coming up to you for your service or product, but then you just don’t receive the payment. This is quite frequent and might happen to anyone. What matters is how save yourself out of situation, but what matters even more is the fact that you implement some steps or checks to avoid such bad debts with a lot of professional guides present online like – http://www.reportingaccounts.com/

Use Your Customer’s Free Company Information

Let’s look into a few points to understand how to make the above phenomenon possible.

  • Opt For Credit Application: Go on with creating a credit application at very first place. It’s similar to a bank, this credit application lets you access to the information regarding your customer. It’s hardly one page downloadable document which lists the basic informs regarding the identification of the company.

It can be also helpful as to conduct an investigation before providing the credit. Majority of the companies opt for a 1-2 pages of application establishing the legal terms and conditions with the customer in order to provide security to the vendor at times of payment issues.

  • Do A Research on the Customer’s Creditworthiness through Bank Reference: always runs a credit report for business, in order to check whether the customer’s had any history of bad debts or late payments. You might even contact the bank to seize out some information. But usually banks don’t tend to provide any information and quite reluctant towards it.

  • References from Trade: you must insist the customer to give some specific details regarding firm’s name and current dealings. This issue can be contacted on personal basis to drive out relevant information regarding the firm.

You must be definitely cautious against fake and cheat customers beforehand. As it’s always said, prevention is better than cure.

Categories: Debt

About Author