Check new customer's credit

[JohnnyM]

So I'm the accounting person in a new 3-person operation. For new clients I would like to be able to check their credit. What is the best/most economical way to do this?

I was on D and B but this customer did not come up when I ran a search, so I am not sure where to go next and I don't want to just spin my wheels.

Thanks.

 

[01 grad]

Request multiple references that currently extend them credit. And check them. Always a good idea to make it a policy to work on a deposit basis in beginning though.

 

[Summerof79]

easy sales for a lot of product with a new customer scare the living **** out of me. If it's too easy I usually find out that they are leaving another vendor with a lot of aging receivables.

 

[l00p]

By vendor you mean another lawyer or law firm? JM, have you switched professions or are you just the accounting guy for a 3 man law firm?

Do you sell product or just your soul?

 

[JohnnyM]

Thanks for the responses. This is not a law business, this is a product broker business.

As for checking references, this particular client gave us a credit profile sheet with bank information and trade references. I just don't know if I'm supposed to fax them some form, just call and say "hey tell me about xxx", or what. And I'm always quite fearful of making myself look like the amateur that I currently am.

 

[01 grad]

yes to faxing a form. Length of relations, max credit, current balance, high historical balances, comments, etc.

 

[JohnnyM]

Thanks...found a form that works and am faxing that now.