Taking on new business is great for any company, as long as you know how to manage customer risk. Here are five things you can do to help manage your risk.
A quick online search can help you find basic information about a company. Here are a few things to consider.
If the company is publically traded, all of the information you should need will be available in its quarterly and annual reports, which you can find at sec.gov.
As a small-to-medium sized business, it’s exciting to get a big contract with a large customer. However, one thing to consider is your concentration. What happens if you lose this contract? What happens if this customer goes out of business or delays payment? Do you have other customers to keep your business healthy and afloat?
Be sure you know the average pay trend of your customer and potential customers. Many companies pay on net 30, 60, or even 90 day pay terms.
If you’re unable to wait for the extended pay terms, invoice factoring is your solution. Instead of waiting to get paid, factoring your invoices provides immediately available funds for your invoices, giving you the cash to meet payroll, invest in new resources, and maintain daily operating expenses.
As a value-added service, TCI Business Capital monitors the pay trends of your customers to let you know of any changes before they affect your business.
Just because a potential customer is a large, well-known company, it doesn’t always mean that they have good credit. It’s important to be aware of their credit history and monitor it to ensure payment.
As a value-added service, TCI Business Capital monitors the credit of your new and existing customers. Our credit team will alert you of any changes that could impact your business.
If possible, ask your potential customer for references. It is a good idea to let them know what types of things you’d like to ask so that they can put you in touch with the right people.
As a value-added service, TCI Business Capital offers its clients a customer reference sheet with a list of questions you should be asking all of your potential customers.
Bringing on new customers is great, as long you know how to manage your risk. By using these five points as your business grows, you will build a stronger customer base and a profitable business.
One of the most beneficial, value-added services for our factoring clients is risk management. Our Credit Department has comprehensive information on credit histories, payment trends, and relevant working experience on thousands of companies.
Companies use invoice factoring to get immediate cash for their invoices. With TCI Business Capital, growing your business and managing risk go hand in hand.
To learn more about our invoice factoring programs, give us a call at (800) 707-4845 or fill out the form below.