Due Diligence Before Offering Business Credit
Thinking about offering credit? Start here first. Before selling on credit terms, ask the one question that really matters:
What happens to my business if they don’t pay? Smart credit control starts before the contract is signed. A few essentials:
- Do a company search
- Check for bankruptcy, director bans & current litigation
- Use the 5 C’s to assess risk:
- Character
- Capacity
- Capital
- Collateral
- Conditions
Due diligence doesn’t just protect your money, it protects your peace of mind.
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