Top warning signs that a customer is in trouble

August 24, 2015 Scott Simpson

By watching your customers’ behavior with you and pulling his credit at least three times a year, you’ll be able to determine who is actually risky and who is having some lumpiness in their cash flow. Watch for these key signs of trouble:

  • Payment trends with trades worsening
  • Other trades reporting > 90 days
  • Recent judgement or  liens
  • Money outstanding approaching historical high credit
  • Several new inquiries and/or new trade liens
  • FICO of owner or PG <700 or weakening

 

A contractor who is in a spiral can turn into someone that becomes a bad debt risk for you. So, how do you know if someone is getting in trouble? Read the full article to understand the warning signs and get our advice. 

About the Author

Scott Simpson

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.

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