Did you know that collaborating with your suppliers can bring a lot of benefits to your company? A business relationship can actually give a business an impressive competitive edge. It is also important to know about the businesses you interact with. Commercial credit reports can be of great help. The SMEs in the UK are owed at least £67 billion of unpaid invoices and this number could be higher considering this number doesn’t involve those companies’ who don’t submit detailed annual reports.
The average waiting period of SMEs for invoices to be paid is currently at 72 days. With the growing trend of late payment and even unpaid business debts, it would be great to take precautionary measures before they start doing business with certain companies. It is important to know that delayed payment affects your business in a significant way and this could lead to the negative overall performance of your business.
Business-to-business (B2B) fraud is a big problem going for a multi-million dollar per year. Luckily, there is technology that provides tools to protect business owners and the most effective one is tracking a business’s credit information. It is worth noting that as a business, if your customers take their sweet time before they pay bills, maintaining a healthy cash flow all the time is not possible and this can lead to business crises in the future.
The time and resources your company spends chasing away late payment and debts can be used in the productive sections of the company. You will also be limited to budget ahead since your cash flow will be affected as well. Check out some of the reasons you should check a company with an aim of protecting and reducing your business’ risks:
1. Getting potential clients
The system enables you to search for any company in the UK or abroad. Vetting your potential customers is good because you will be able to see vital information such as the way they incorporated their financial books, their level of credit risk, the ownership of these companies and any other essential information. With this information, you will be able to know the terms and conditions you will set while doing business with them.
2. Company history and ability to pay in future
A company credit check report is very important because the financial history indicated in it will enable you to know the history of their directors and the previous relationship with other companies they have worked with before. Remember, all the companies you get into business with can never tell you that they are not financially stable and so it is upon you to find out their previous working relationship with their customers. A business credit report is the best way to know if they will pay you all your money at the right time. You will also know about their financial history instantly. Their credit score…