Your business must collect information about the customer and their creditworthiness. Collecting information about the customer and a construction project requires a holistic approach involving almost everyone in the business.The credit management team, sitting in the home office, is not in the best position to collect this type of information. Their greatest role is in analyzing information, such as security rights, and making sure that proper documentation is in place before performance begins. Salespeople are actually in the best position to collect information about a customer and the project when the relationship is established and as the relationship continues over time.
Tips:
- Collect information on the creditworthiness of the customer and available security
- Analyze your risk in view of the information collected
- Preserve legal rights through proper documentation
- Obtain and preserve the best possible security
- Monitor the customer and account carefully
- Move quickly to preserve rights and collect in the event of trouble
Credit Applications
In deciding whether to extend credit, you need to know whether a customer is “creditworthy.” Does the customer have sufficient assets? Is the customer likely to pay bills when they become due? Don’t be afraid to ask for credit applications. You need information on a new customer; this displays the competence, care and professionalism of your business.
Request for Bank Credit Information