Grow and protect your business with great credit management practices
The facts around the credit industry are that insolvencies are on the up, which means so is the risk to your business.
The Government's most recent insolvency statistics show that 'registered company insolvencies' are 79% higher than in the same month of the previous year'. Even comparing the latest figures with pre-pandemic figures, they are 34% higher.
Now is the time to look at your preventative measures and make changes to improve and minimise your risk of bad debt.
Credit information is a great way of assessing your businesses level of risk when taking on new customers and continuing through your trading relationships.
You can take an unbiased 3rd party opinion, who's skill is to crunch numbers and create algorithms. Based on the accounts filed, public record information, economic and industry pressures along with other factors.
When you're considering extending credit to potential customers or increasing a current customer's credit limit, what do you actually want to know?
"Will I Get Paid"?
That's why industry specific credit information i.s so much more than a standard credit report. A community of businesses sharing their trading experiences will enable you to build a true picture and really assess the risk to your business. You can see how a business is paying other suppliers right now because, ultimately, we all want to know we are going to get paid, right?
Prevention is Better Than Cure
Protecting your business from bad debt goes hand in hand with having the ability to grow your business.
Keeping your cash flowing, protecting your business and minimising the risk of bad debt starts and ends with credit management.
For construction businesses we offer a free trial of our industry specific credit information and debt recovery services.
Using our construction specific insider intelligence, our team removed the credit limit back in April for a large civil engineering and groundwork contractor. On the 11th July we confirmed the company had appointed administrators. Our members received our early warnings, over 3 months before any other agency.
Contact our team of experts on 01527 518800 for more information.
#1 Construction Industry Credit Reference Agency
About the Author
Emma Reilly, Managing Director - Top Service Ltd
Emma has been working in credit management for over 20 years. She is a member of the Institute of Credit Management and actively works with their mentoring program.
She has worked with many construction businesses, consulting with them and working to improve their credit management practices, bridging the gap between 'sales and credit management' & providing access to industry specific credit information & debt recovery services.
Emma is a keen advocate for promoting credit management as a positive source of growth within a business.
'Access to information that tells you how your customer is paying other suppliers is vital to protect your business from bad debt and improve your businesses cashf/ow.
Credit management isn't just about collecting money. It's about creating a foundation of information and knowledge to build great business relationships"
