It’s not easy to keep a business afloat nowadays given the uncertainty in the economy and the ever-increasing competitive nature of almost every industry. The internet has made cost-effective marketing and the ability to trade on a global basis accessible to almost everybody, and that means you’re probably pulling out all the stops to attract new customers – and keep them.
However, marketing is only half the battle when it comes to attracting new customers. Of course, you need to market your business effectively to make sure your potential clients can find you, but you might also need to offer attractive incentives to get them on board. If a client finds a range of companies offering a very similar product or service to your company, you might have to offer something a little extra in order to gain the upper hand over your competitors.
You might be tempted to offer your services on credit as a means to secure new business. We have all experienced periods where we’re a little short of cash, and that can make purchasing products or services on credit seem quite attractive. However, if a company chooses you based on the fact they can purchase from you on credit, can you really be confident they’ll pay the money back?
Be Careful When Lending
It’s nice to think that it’s fine to offer credit to clients and customers and have confidence that they’ll pay back in full on or by an agreed date, but you can never really be sure unless you request online business credit reports from Apart-Data, a third-party, unbiased credit check company.
In the majority of cases, you should be able to place trust in your clients with regards to returning payments and clearing debt. However, in admittedly rare cases, you might be offering your services on credit to a company that doesn’t actually exist. Of course, these scams are rare, but it’s not as if they’re unheard of.
More likely, in situations where a company doesn’t repay their debt, the company that owes money is simply unable to return the cash because of debt problems or a lack of trade within their own business. Unfortunately, regardless of how much you need to win new business, you can’t afford to be lending money to clients that are unable to return the cash by an agreed upon date.
What Company Credit Reports can Do for You
In order to avoid the potentially huge problem of a customer being unable to clear their debt, you’ll need to check their credit history via a company credit report. These reports contain invaluable information such as:
- Repayment habits
- Balances outstanding
- Number of trade experiences
- Company background
All of the data on the report is organised in an easy-to-read way so that you can quickly decide whether the company you are dealing with is creditworthy. All the data is gathered from third-party sources, which means you can trust the information is accurate and unbiased. Make sure you always access company credit reports – it’s a much safer way to do business.