Remember the old adage, better safe than sorry?
When beginning a business relationship with a client how much credit should you extend? How do you know that you will get paid?
We suggest researching businesses and business owners by searching the internet and public records to uncover any potential liabilities, judgments, bankruptcy filings, pending lawsuits, UCC filings, multiple corporate entities and negative press. Make sure to confirm the customers name with the Divison of corporations.
Spend a few minutes reviewing the client’s website for additional information.
- Is the site viewable and active?
- Do the contact details listed match the documentation provided to you?
Request trade and bank references and verify the information.
Don’t be shy, ask for the name of the prior vendor. Why did the relationship come to a close?
Protect your business. Due diligence at the onset of the relationship may avoid regret later.