Ten common mistakes when tackling business debtors – Mistake 2: Not having enough information about your debtor
26 January 2016
Mistake 2: Not having enough information about your debtor
Before you enter into any new business relationship, it is highly advisable to undertake ‘due diligence’ at the outset. This means you should try to gain as much knowledge as possible about your new customer’s ability to pay as is reasonable, depending on the size of the transaction. If dealing with consumers, it is also advisable to gather information relating to their employment status, their home ownership status, other financial commitments and whether they have had county court judgments or issues with debt repayments in the past. This can be done by carrying out a credit check.
The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.