Are You Keeping A Close Eye On Your Customers?
If you run a b2b business then you may already be aware of how difficult it can be to recover late payments. Often it can seem easier to stop chasing when the costs of doing so outweigh the investment you put in. This is why it’s all the more important to do some detective work on your clients even when they may have been with you for some time.
Most business do the due diligence on their customers prior to working with them but there are still a small proportion who neglect it at a potentially high cost to their business. New customers should always be credit checked where possible to find out all important information about the business you are dealing with including directors and payments.
Aside from credit checking there will also be plenty of websites where you can find out the current financial position of a business.
Where businesses often come unstuck is with longer term clients. When clients of a history of paying their invoices on time, it is easy to get comfortable and not be aware of any changes within their business. This can be a change in company ownership or perhaps a change in their financial position which will make it difficult for the company to continue to function and fulfil all of its payment obligations.