How many times do you check your customer’s creditworthiness?
How often do you check?
What information do you use to check them?
What do you look for and what information do you use?
How much time do you have to continually monitor?
In today’s busy work place we are all trying to do several different jobs within the one job function. Everything we need to do takes up time and then some jobs maybe don’t get the attention they need.
No matter how efficient one’s credit control, there is no guarantee that goods sold or services rendered will be paid for. A decision concerning potential customers creditworthiness is based on the quality of the information held:
– Trade references are of little or no worth. A company will always keep one or two accounts ‘sweet’ for the purpose of providing good trade references.
– Bank references have always been vaguely worded and are now at best a burden to obtain.
– Status reports are expensive and the information is often too historical to be of great use.
There is no doubt that Insured’s benefit greatly from the size and quality of Insurers databases. Credit Insurers are in the unique position of being able to gain information from innumerable sources, many of which provide unpublished information. Underwriter’s ability to access up-to-date intelligence on a company’s financial position and ability to meet contractual obligations provides an excellent fail-safe for one’s own credit control measures.
Insurers will be writing cover in most cases for a number of Insured’s and for a variety of reasons. For instance, not only will a company owe money to its suppliers in its normal course of trading but it may also be indebted to its advertising agent, building contractor, haulier etc. A Credit Insurer may be providing cover to suppliers in each of these very individual trade sectors.
Any deterioration in payment will come to the notice of the Insurer. Such early warning signs will often help you reduce your exposure and may thwart a disaster.
Furthermore, a disputed invoice to you may be an acceptable commercial fact. If however other Policyholders are experiencing similar problems it may be that more serious difficulties are being disguised which will come out under further examination.
With Credit Insurer’s information being up-dated continually with both published and unpublished information, they are often one of the first to become aware of a company’s financial difficulties.
Such information may assist in reducing your exposure, or at least ensuring that it is not increased at the fatal moment.
Isn’t time you became part of a Credit Intelligence Network.