Managing credit risk is not for the faint of heart: 90% of contractors will fail in the first ten years of business, and most of these contractors will fail within the first three*. The question of bad debt is really not a matter of if, but when it will happen to you and how badly.
The key to protecting yourself is to understand the difference between a customer who is having a temporary dip and someone who is becoming a dangerous credit risk. This article provides ways to identify when a customer is potentially becoming a dangerous credit risk, and what you can do about it.
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