How To Research A Business Customer’s Creditworthiness
Extending credit to business customers can be an effective way to establish goodwill and nurture long-term buyers. But customer credit also brings financial risks. For this reason, it’s critical to thoroughly research a customer’s creditworthiness. Start by contacting the potential customer’s trade references to get background on its payment history. Also check its banking info to ascertain financial stability. Order a credit report to obtain its business credit score. To glean some insights beyond dollars and cents, explore traditional media (newspapers, magazines, trade publications) and social media to get a better sense of the company. Contact us for additional tips.