The credit process is not just about uncovering the risk of someone not paying you back – it’s also about identifying if a customer will be slow to pay. More than an inconvenience, the cost difference of providing credit to someone who pays promptly and someone who is chronically 60 days late can be 2-4%, depending on your cost of money and how much resource you use to collect that money.
This increase in cost can mean the difference between a profitable and unprofitable customer.
This article explains how to use all of the information at your disposal to uncover what kind of customer you are getting.
About the Author
Scott is president and CEO of BlueTarp. He has spent the majority of his twenty year career in financial services helping businesses grow more rapidly through the effective use of credit.More Content by Scott Simpson