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Why all SMEs should perform credit checks

Credit? Check! SMEs tend to shy away from doing credit checks because they seem to think they should be grateful for any business at all. However, not checking up on a customer might hinder your cash flow down the track, so it’s best to nip it in the bud by including a credit check in your payment policy.

Let all your customers know that you do a credit check on everyone as a matter of policy so they don’t feel as if you don’t trust them. If a customer fails a credit check, give them a chance to secure credit through other means instead of potentially losing their business.