It is a generally accepted principle in business that credit is given on invoices raised, it is also accepted that many customers will be late in paying.
The question we ask is what is the actual risk to you?
This is not about how well you know the customer or whether they always pay in the end, it is about measuring the risk and remaining aware of it. This includes taking action when the level of risk changes.
The principle here is the same as you receiving a credit card, after a while when all payments are made then the limit will be increased, should you default elsewhere then your limit will likely decrease. Why? Because your credit card company will watch your credit rating.
You should be doing the same with your customers. It is an easy thing to do, we will arrange everything and let you know when anything changes, all from £5 per month.
If you want to know how this system saved a client of ours over £10,000 then get in touch…