Bizstartup.ie - Biz Centre

It’s extremely advisable to determine the nature of your new customers before you enter into a trading relationship with them. Carry out a credit check on any potential customers to assess whether you want to work with them.

If they have a low credit rating, but you still want to work with them, reflect this by only offering a small credit limit. This has two benefits: firstly, it shows that you are offering them some trust in the working relationship, but secondly, you are risking less if their payments are tardy.

Check new customers’ payment histories regularly. If they are consistently on time, you could consider increasing their credit limit as a low-risk way to increase business from them. If the customer exceeds their credit limit or invoices are unpaid, don’t provide any further goods or services until they are back within the terms of your agreement.

Another idea is to use any business contacts you have to see how other companies have fared with your potential customer. Word of mouth is very often invaluable in the business world and late or non-payers will very quickly gain a reputation.

See who owes you money and who you owe money to at a glance.

TAS Books Basic is FREE accounts software that has been specifically designed for start-up and small businesses, so you don’t need to be an accounting expert to use it. It’s completely free and only takes a couple of minutes to download – TAS Books Basic – FREE accounting software .