Carry out Ongoing Credit Checks

Ongoing regular credit checks can spot when a customer is falling into financial difficulty. Changes in customer behaviour should also prompt a credit check, for example :

• Customer takes longer to pay than usual
• The customer has asked for increased credit terms
• Exceeded credit limit
• The customer is disputing invoices to delay payment
• The customer begins paying by cheque instead of bank transfer
• Customer's cheque bounces
• Reduction in order quantity or cancelled orders
• The use of TAK's Credit Guardian, integrated with your accounts system provides you with a live view of the credit worthiness of each of your customers. You can download this software and get your free credit rating reports here

Should a customers payment habit or credit rating deteriorate then you should consider reducing credit limits and negotiate new credit terms with them.