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