Numerous Inquiries About One of Your Clients Can Be A Warning Sign of Potential Credit Problems!
As a business, it is important to understand your clients. Weather it is a first timer - or a 'regular' one must do their research. To ensure your product and/or service will be paid for, first determine the customers ability and likelihood of settling a debt within agreed credit terms.
If a client has a history of overdue debts, bankruptcies, disputes or longer repayment periods, these are a huge red flag and warning sign of potential credit problems. Disputes need to be dealt with right away, hear the client out but be sure to keep an eye out for foul play. If the client starts suddenly complaining about your services, find out if there is a real problem, because alternative motives may be in effect. More often than not, customers pick fights when they know they are in financial trouble, hoping to buy some time before paying you.
Be especially watchful and selective before extending credits to clients. If you have a client that repeatedly makes excuses and asks to extend payment deadlines, it is best to stop working with this client immediately. Remember, cash flow is king to any business and receiving on time payments is a crucial part to financial success.
Bella Debo