Customer Assessment

How do you give yourself the advantage in a credit relationship?

The answer:

  • take a bank reference
  • take trade references – try for recognized names
  • seek independent references
  • ask how the customer came to know about you
  • obtain a credit reference report
  • obtain published company accounts
  • assess financial ratios
  • if possible visit the customers premises
  • provide your terms & conditions of sale
  • set a credit limit and a risk category
  • resist the temptation to ignore the obvious
  • make the right decision
  • get a guarantee