Credit Control – Preparing for Contract
Useful for: Business (including not-for-profit)
In Brief
- Before you sell goods or services on credit terms, ask yourself “What are the ramifications to my business if the customer doesn’t pay?”
- Carry out due diligence (enquiries) on your customer’s company to a level appropriate to ensure that you can make an informed decision about your risk in extending credit to the customer. Always commence due diligence with a company search.
- Understand what you are looking for from your due diligence in order to evaluate the Five C’s of credit – Character, Capacity, Capital, Collateral and Conditions.
Read Full Article
Already have a subscription?
Click the button below to view the article. If you are not logged in, you will need to do that.
Monthly Subscription
$25.00 per Month (inc GST)
You can purchase a subscription and get access to all articles right now.
You'll be notified by email when new content is added or existing content is updated.
Your subscription will continue until you cancel it. You can do this at any time before the end of your monthly billing period.