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Effective credit checks are an essential part of running any business.

Is a customer likely to go out of business owing you money?  Will a customer delay payments, costing you time and money as you chase the payments?

As a business you should have a clear approach to managing credit risk.  If you do, your customers will soon learn that you are serious about credit management and your payments will be prioritised above their more lax suppliers.

Credit limits offered to individual customers should reflect their risk of defaulting on payment.  The limits you set should be based on references and credit checks.

Credit reports make it easy for you to build an effective credit control process.  They show detailed Company information, risk scores and suggested maximum credit limits.

Find it.  Read it.  Protect Yourself.

Please refer to our best practice section to see detailed guidance on setting up and managing an effective system of credit management.

It is now possible to obtain online customer credit reports fast enough to use them as a basis for real-time decision making.  UK Data Limited is one of the UK’s leading providers of Company information and Credit Reports; you can access their database here.

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Implementing Effective Credit Management

Our detailed guidance is free and has been prepared by an experienced ‘Big 4’ Consultant.

Introduction to Credit Management

Having a good system of credit control is essential for any business, and particularly so for new businesses with limited cash resources.  Company’s that ignore credit risk are far more likely to suffer uncollectible debts, liquidity problems and even business failure…View full article

Credit Policy

A Credit Policy defines the standard credit terms that you offer to customers.  New customers should be sent a copy and asked to sign and return the document as evidence that they are aware of, and accept your trading terms…View full article

Credit Checks

The most important (and easiest) piece of information to obtain is a credit report from a UK credit reference agency such as UK Data Ltd.  These reports show detailed financial information, along with risk ratings and a suggested maximum credit limit for the customer.  If you have the resource available, it may also be worthwhile obtaining a bank reference and references from your customers key suppliers…View full article

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Company Credit Checks and Company Information