Home topics finance Finance Finance How to know if your customers will actually pay you Roger Mendelson January 21, 2020 Many small businesses take on jobs and incur costs in buying materials, even carry out work well before they get paid for the job. In an ideal world, your business would obtain payment upfront from the customer to cover significant job costs. However, a lot of the time this isn’t possible, particularly if your customer is a larger business. So, as a business owner, how do you ensure that your customers pay you for the goods or services that you provide in an efficient and timely manner? The basic first step In making any business decision, it’s imperative to gather as much information as possible to ensure you’re making an educated judgment. If you are providing credit in any sizeable amount, it’s important to always ask your customer to complete a new customer form. This allows you to gather all the necessary information to determine whether they are reliable. Doing this will not irritate your customer – in fact, it will show them that you run a well organised and efficient business. You can easily find templates for these forms online. Carry out reference checks Knowing the history of a new customer can shine a light on whether they will be reliable. A few phone calls will either put your mind at ease, or ring alarm bells. Taking the time before granting credit to new customers can save you a