Business checks should be a regular action to safeguard a business
Whilst reducing business risk has always been a key consideration for company owners, never before has it been so necessary than in today’s improving but still uncertain economic climate. We have seen many a business suffer from not carrying out the right checks on new customers and suppliers which has led to them jumping into a deal or opportunity with both feet without stopping to think about the ‘what if’s’ – and we’ve seen this right across the board and in established businesses, not just with start-ups or inexperienced firms.
There might have been a time when a gentleman’s word was to be trusted and we’re certainly not saying those days are over, but even those doing business with the best intentions sometimes aren’t able to deliver on an agreement due to unforeseen circumstances. Forearmed can certainly be forewarned and we think there are a few guidelines you can follow to help reduce your business risk.
Carry out checks on suppliers as well as potential customers – whether a potential customer or supplier, business owners should look to conduct checks on both to avoid a situation which could cause damage or potential loss to their business. In the case of a supplier, it could be an order that can’t be fulfilled, which could cause a variety of problems for a business relying on that order – especially there payment has been made. In the case of customers, it’s good to know they are financially sound enough to pay for goods or services, especially if you are likely to be letting them have delayed payment terms.
Make checks count – there are many ways of conducting financial checks but some readily-accessible methods omit important information such as that relating to directors and financial and payment history, instead focusing on country court judgements or credit score. A business bothering to make checks should do their best to find out what services are available to avoid the exercise being pointless.
Assess potential risk – there doesn’t have to be something wrong in the data to indicate a potential problem. A company could have a perfectly good credit score, but there may be hidden risk ‘indicators’ that specialist checks would highlight. Some of the more sophisticated systems use live data which is more accurate in risk prediction.
If you are interested in ways in which you can shield your business from risk, call us now to find out about Business Protect, our sophisticated, high-tech business safeguarding service.