It’s great to get work from new customers, but you want to make sure that you get paid for the work you do. Here are five basic tips from TCI Business Capital’s Credit Department.
It’s just like the old saying: if it’s too good to be true, it probably is. Be careful of accepting new contracts that offer you rates way above average. When a prospective client company has a history of not paying, it’s hard for them to find people willing to do the work because of their history. Some companies struggling to pay their contractors use the technique of offering to pay a price that’s too good to pass up. It may seem good upfront, but when it’s been 100 plus days since you’ve completed the work and haven’t received any payment, that rate no longer matters.
Utilize the Internet as a tool. Doing a simple search on Google or Bing can provide you valuable information about a prospective client company. Look for any news articles about them. – Is there any negative press or are there lawsuits filed against the company? If so, you may want to reconsider accepting the contract.
Listen to what others are saying in your industry and in the field. Have other companies you know worked for them? Have they heard anything about them? Talking to your network provides you with insight that no internet search or credit check will provide.
Be on the lookout if a company has recently laid off a large number of employees. Large layoffs could indicate financial struggles. When you do your basic searches on Google or Bing, there will most likely be a news story or some sort of press on large layoffs.
Credit checks are an excellent way to see if potential customers are creditworthy and have the likeliness of paying you for the work you do. On your own, this may be difficult to do. TCI Business Capital clients utilize our Credit Department team to check the credit of our clients’ customers and potential customers. Our Credit Department uses several third party systems and reports to determine the creditworthiness of your customers and potential customers. This is just one of our additional services we provide our clients at no extra charge.
Instead of waiting to get paid or wondering if you’ll get paid, partner with TCI Business Capital. We’ll not only make sure you’re working for creditworthy customers, but we’ll also pay you on your invoices within 24 hours. The worries about when and if you’ll get paid are no longer relevant as TCI Business Capital takes care of that for you. Call 800-707-4845 to get started today.