credit checks

Customer Credit Checks Essential in Christmas Sales Rush

Small businesses need to ensure they credit check customers in the run up to Christmas or risk selling to individuals and firms which later prove unable to pay, a debt recovery firm has warned. Carole Hughes, Managing Director of debt recovery firm Daniels Silverman, said that as the Christmas season goes into full swing, and shoppers rush to beat the January VAT increase, many small businesses are neglecting credit checking procedures. “Small firms will pay the price later as customers default on payments for goods received in December. A sale is not a sale until paid in full. However, we see many small firms that, buoyed by the prospect of a sale, have failed to follow the fundamental credit checks to ensure they are dealing with a reputable company or individual, capable of fulfil... »

Credit Checks Critical in Current Climate

Knowing who you are dealing with is the key to survival in the current turbulent economic climate, suggests Clive Lewis, Head of SME issues at the Institute of Chartered Accountants in England and Wales (ICAEW). He urges small businesses to invest in new credit checks on their customers to ensure they are aware of any potentially ‘bad apples’. “Nobody can hide from the difficult credit situation any longer. Critical to coping with it is rigorous credit control – and that means having up-to-date credit references.” says Clive Lewis. “Whilst many small businesses are diligent in carrying out credit checks on new clients, the information obtained is only of any use if it is up-to-date. In the current credit crunch climate, customers’ creditworthiness ... »