You should verify your customers’ credit, particularly when you have new clients. A client that you have not previously done business with lacks the established relationship and history your business has with its long-standing customers. Doing a credit check allows you to avoid a collection problem, which could impact your cash flow in the future. It also allows you to escape the headache of trying to collect overdue bills, which takes time and effort, when your resources could be put to better use. You can check your potential customers’ credit by requiring an application, scouring information on social media and news reports, and checking credit scores from Equifax Canada and TransUnion Canada.
2016-12-14 00:00:002016-12-14 00:00:00https://quickbooks.intuit.com/ca/resources/client-relationships/run-credit-screenings-new-clientsClient RelationshipsEnglishScreen your new customers carefully to avoid a cash flow problem later on that impacts your company's ability to function.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/06/Small-Business-Owner-Runs-A-Credit-Check-On-Her-Client-Before-Investing-A-Lot-Of-Resources-Into-A-Project.jpghttps://quickbooks.intuit.com/ca/resources/client-relationships/run-credit-screenings-new-clients/Run Credit Screenings on New Clients
Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.