Our guest blogger this week is Chris from Query Management. She has put together an insightful piece on avoiding bad debt. Thank you for the helpful tips Chris!
Here’s a list of eight warning signs we’ve learnt to watch out for. No single sign is evidence of anything – but each one is a little piece of intelligence that can help you put together a fuller picture of a customer’s situation and allow you to take action sooner.
1. You can never get through to the right person, when once you could.
There’s a good chance you’re being deliberately avoided. When a contact starts to become elusive, it’s time to wonder why they don’t want to talk to you.
2. Changes to the board
Changes to board membership are perfectly normal. But it’s always worth bearing in mind what might have prompted a director to leave – and what effect their departure will have on the company’s success or otherwise.
3. A new address
Again, businesses relocate for a wide variety of reasons. But if you notice a new address, take a look. Are the new premises smaller than the old ones? Downsizing might be a sign of increased efficiency or outsourcing, but it could also be a sign of a company struggling.
4. A county court judgement
Never an encouraging sign.
5. An increase in orders
Can an increase in orders really be cause for concern? Yes, if it’s because the customer has exhausted their credit elsewhere.
6. A returning customer
You might want to celebrate when a customer returns after a gap. But could it be that the supplier they moved to is no longer keen to supply them?
7. A change of name
An apparently innocent name change could mask the closing down of one company and the opening of another. Worth investigating.
8. A change of bank account
Bank account changes can be prompted when a company fails to get finance. That doesn’t necessarily mean the firm concerned is in trouble. But it just could be a sign of a problem.
If you start to feel suspicious, then do some digging – and find a reason to visit. You might be surprised what a face-to-face on-site meeting can reveal!
If you could use some extra intelligence to help you assess trading risk accurately as well as help to get cash in sooner, just give us a call on 01625 87819801625 878198. Customer monitoring is a key part of the service we offer to our credit control clients.