How to check your customers are creditworthy

Knowing your customers is important, particularly if you're giving or extending credit, as their cash flow problems can quickly become your cash flow problems. Whether you're just starting a relationship with a new customer, or have been dealing with them for a number of years, it is vital to have a thorough understanding of their situation. Here are some simple, free ways of finding out more about who you're doing business with. Checking out a new customer You wouldn't give cash to a total stranger, so why should you be expected to extend credit to a company you don't know?

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