Checking Credit/References: Why is it important to your business?

Posted on:
March 3, 2014

Did you know that by pulling a credit report, you may learn valuable information that either makes you more confident in granting credit or leads you to a decision not to grant credit at all? What if you could see that they pay everything late; or everything on time? Would that change the limit of time or dollars you grant for credit? Additionally, the trade references should be called at the time of application. In my experience, it is generally true that most people don’t call these references. I find that most credit managers are happy to brag about the outstanding accounts they have, as well as tip their hat to you when a client makes them work harder.

I have found these relationships to be very helpful on many fronts. One, in some cases, we share multiple clients. In making the relationship, I have found myself sharing legal information from time to time. Additionally, the business is also a good business lead. Once the report is made, I have asked for their business, and gotten it. People will with people they like, and the loyalty bond begins when they know you respect timely payment.