Client credit risk assessment – Who do you think you are dealing with?
Why should I make a client credit risk assessment? At the start of any commercial relationship it is important to establish exactly the type of legal entity you are trading with because your contracts will include this information in them and, in the event that the relationship does not work and legal proceedings are required, your contracts will form the basis of the legal action.
The best way to obtain all the relevant information is to ask your customer or client to complete a Credit Application Form. You can use the information supplied by your client to make a credit risk assessment using
- Credit information reports
- Bank references
- Trade references
If the information is inconsistent re-confirm the detail with your client and check again.
- Credit Management – A Guide to Risk Reduction
- Client credit risk assessment – Who do you think you are dealing with?
- Obtaining a company credit information report
- Obtaining a company bank reference
- Obtaining a company trade reference
- Customer credit risk assessments - How do you set a credit limit?
- How to get your trade terms right
- How to claim late payment fees
- Credit Management Summary - where to now?
