2016-11-09 00:00:00 Credit English Understanding the quality of your customer's credit is important to your business' health and growth. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/10/Business_owner_checking_a_customers_credit.jpg Credit Screening

Credit Screening

0 min read

As a small business owner, you should verify each customer’s credit prior to shipping your goods. If a customer pays cash or submits a credit card when placing the order, you have been paid in advance, and, unless he charges back on his credit card, there are no worries. However, if you extend credit prior to shipping, you are risking non-payment for merchandise that is out the door. You may have revenue that is booked, but your cash flow will suffer.

There are several companies that can check your customers’ credit. Experian will perform this for you, and it has different services for a small business as opposed to a medium or large enterprise.

References & Resources

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.

Related Articles

Why You Should Screen Volunteers for Your Nonprofit Organization

Anyone who works with or for your nonprofit acts as a face…

Read more

4 Things You Need to Know About Small Business Credit Scores

Once you start a business, you have two credit scores to monitor:…

Read more

How to Grow Business Credit in Canada

If your small business is just starting out, then it probably has…

Read more