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Comprehension of your business creditworthiness
Subsequent findings illustrated the fact that small business managers often did not know what affected their creditworthiness, let alone how to enhance it. So if you don't check the creditworthiness of your clients, how do you know who you're doing business with? Conditions of credit are a way of creditworthiness, so non-compliance with these conditions will affect your creditworthiness.
A number of credit rating agencies have at their disposal information that can avoid making a payment to a customer group of their own and thus see which companies pay their bills on a timely basis and which do not. Many rating agencies provide you with this information, and our next paper will cover this topic.
Surveillance of all material changes to your business, your mailing list, your corporate identity that have been made against you will protect your own business from damage.
Knowledge is powerknowledge is power.
Results show that the managers of small companies often did not know what influenced their creditworthiness, let alone how to enhance it: More than half (56%) of those who had done so had not reviewed it in the last six month. When you check the creditworthiness of your clients, they probably also check your creditworthiness. The least important thing is to consider any possible mistakes or imprecisions on your credit reports.
Pay attention to your own financials: For start-ups with little financials information, you can use your owners' financials information as an indication of your company's credibility. Conditions of credit are a way of getting credit, so non-compliance with these conditions will affect your creditworthiness. Don't neglect partners: keep track of your customers' and suppliers' credit exposures so you can mitigate the impact on your business if one of them goes into management.
But it can be a crucial issue if a company's cash flow is scarce or is looking for ways to expand, and there are utilities and procedures that a company and its consultants can use to rationalize their credit review activities. It is also about reviewing relations. Whereas in some cases the slower pace of payments can only be a company that controls its cash flow by holding on to cash as long as possible, a credit check can detect early warnings.
With Experian Business Assistance, you can make more confident choices about who your business is working with so you can better manage risks and increase your bottom line. Download your free UK Business Credit Reports test version to check out all UK businesses or talk to one of their consultants to see how they can help your business today.