Spot the Sharks | Uncover Problem Payers before they become customers
You’ve landed a new customer. That’s great. But, before you get too excited, how much do you really know about them? Are they a customer worth having? What systems do you have in place to uncover problem payers?
Let’s face it if they take 90 days to pay an invoice or are on the verge of insolvency, they could actually do you more harm than good.
More often than not most businesses will be fine. However, wouldn’t you like to know how reliable they are before they end up owing you a lot of money?
The way to learn about a business’ credit history is, of course, to get a credit check. If in doubt, click here to learn why a credit check is worthwhile.
Now that Shark Patrol no longer provides Credit Checking we suggest that you rely firstly on your own personal networks. If you have been in business for a while you will have meet others in the same industry as you, pick up the phone and start asking around. It’s also not that hard to figure out what other suppliers your new customer might be using.
But what about the Privacy Act? you say. What about it? we say.
Your Purpose Written Terms of Trade should have that covered. There will (should) be a clause that says something like; “the customer gives you full and unreserved permission to share, swap and / or exchange with ANY third party credit related information about them”. Its usually a little more legally PC, but I think you get the picture. Additionally, the Privacy Act does not cover Companies.
Then you might want to consider using the services of a Traditional Credit Reporting agency, of which there are three in New Zealand;
Each has a fee for this information and our issue with the traditional Credit Reporting agency data is that it tends to be old data. Old in that it can be many, many months after the debt first occured. However, a leopard shark never changes its spots, so a history of repeat bed debt should show up.