Debt control starts as soon as you onboard a new Customer
Performing due diligence is an essential part of onboarding a new customer. How you approach this varies on a business by business basis but the fundamental principle of protecting your revenue is always the same.
By setting the bar early and covering all basis you are protecting yourself from the initial risks involved when you bring a customer on board.
Following some simple steps ensure that you have all the information you need before the signature is recieved.
It may seem complicated, time consuming, even self damaging if you find you cant offer your services based on your findings, but its better than finding out to late and incurring debt.
Thoughts
Is Credit Referencing Worthwhile?
Yes… and No. It depends, not really the answer you expected?
Credit referencing only reports past performance but it is a good indicator of a businesses performance and credit eligibility but it can’t tell the future or suit every business.
It can be just as good to do your own research, obtain references and trust your gut. And always watch out for the early signs of trouble and act fast?
If you do require credit referencing we can provide detailed Business credit reports for a small fee
No matter how many Sales you make, if you don’t collect the money, if the invoice isn’t satisfied, it’s all for nothing!
How can we help you?
FAQ
Frequently Asked Questions
We cover some common questions below
An important part of any contract is knowing who your customer is, confirming who they say they are validating they are legally allowed to enter contract and have the ability to pay you.
This should be a pre business “checklist” as well as an “ongoing approach” for business you trade with. You could consider the following elements for a basic pre contract KYC document:
- Proof of business (Incorporation Document, official address etc)
- Proof of PSC (Persons of Significant Control)(Copy driving licence)
- Proof of Business Bank Facilities
- Credit references
Warning signs are everywhere. You just need to remove emotion and view facts. we know you want the sale, but you want to get paid
- Residential Address not a business premises
- Personal E-Mail or free provides such as G-Mail or Hotmail
- Refusing to provide evidence of credit
- Refusing to provide identity documents
- Mobile number only (Less important in modern times)
- Refusing to confirm or sign a contract
- Immediately asking for credit or longer payment terms
- Refusing to pay by BACS, preferring cheque
Yes, but only if they satisfy Contract Law; not every e-mail is a binding document.
To satisfy contract law the following must occur:
Offer – An offer must be specific, complete and be able to be accepted. The key is the “intention to be legally bound” to contract if accepted. Note – Offers can be revoked and terminated by either party.
Acceptance – The act of accepting the offer, it must be “absolute and unqualified acceptance” to create an “enforceable contract” and must NOT by on any different terms than the offer. A contract is considered binding on receipt of this e-mail
Consideration – This can be payment, work done, equipment or goods received. i.e a party receives a benefit of the contract
Intention to be legally bound – There is a presumption that once agreed in a commercial situation that the agreement is intended to be legally binding and enforceable as per offer and your terms and conditions.
Contractual capacity – The person agreeing the contract has the ability to enter a contract and expose their business to any consequences and obligations stemming from agreeing the contract. This is why you must ensure the person signing the contract has signatory authority to do so.
Contact us for more details