The Best Way to Improve Your Collection Efforts
The business community is a rapidly changing landscape where businesses start up and go out of business every day. How does one differentiate the customers that are going to pay on time and those that have no intent to pay at all? What real consequences are there for a business that purchases on terms but doesn't pay its obligations on time or at all?
In the consumer world if a customer does not pay for a product or service he will almost certainly be reported to a credit bureau and his credit rating will adversely be affected. Using this threat of affecting a person's ability to get credit is one of the biggest incentives for consumers to pay on time. In the same way, a trade exchange program can help you improve your collection efforts for commercial customers.
A trade exchange program enables you to report on your customers to help build their credit profile and give them more incentive to pay you on time. If a company is told that you are reporting their payment history to a credit bureau like Creditsafe, their ability to obtain credit, bank loans, and to purchase on terms will be directly affected. As a result, they will be more careful about neglecting their financial obligations towards you.
While the consumer credit industry has the Big 3 that basically all gather the same information, the business credit industry is more diverse. Because of this diversity, it is important that you are aware of what’s out there. You can report to as many business credit agencies as you want, in fact we recommend it! When you decide to start reporting, make sure you request a logo of the credit agency you’re reporting to so you can place it on your invoices so your customers know that invoice will affect their credit rating.
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