Credit Checking Companies

[mikey k]

We've recently set up a sister business offering low cost hugh quality air compressors to SME's.
We are off to a good start with it but have had a few hiccups with payments.
In our core business we've never had to credit check the companies we deal with and have only had a couple of minor bad debts.
This new one is a whole lot more risky!
What are people using to credit check businesses they deal with and what sort of costs are involved?

[fridaypassion]

Riskdisc is standard. Why offer any credit though? I wouldnt expect 30 days from a widget supplier.

[RichUK]

We use http://www2.creditsafeuk.com/ IIRC we paid £400 for 12 months unlimited access, it has more than paid for itself and their monitoring system is very useful.

[mikey k]

fridaypassion said:

Riskdisc is standard. Why offer any credit though? I wouldnt expect 30 days from a widget supplier.

Not widgets £2.5k to £20k exposure
We try for proforma where we can
But there is the potential for ongoing service revenue so checking them is a good idea for both aspects.

[Simpo Two]

I suppose trade references are a thing of the past? Mind you they could be bent; one customer asked me for a credit reference and he got rather shirty when I declined. Mind you that was only because he hadn't paid his bill...

[mikey k]

Simpo Two said:

I suppose trade references are a thing of the past? Mind you they could be bent; one customer asked me for a credit reference and he got rather shirty when I declined. Mind you that was only because he hadn't paid his bill...

perfect example of why we never bother with trade references

[Zoon]

companycheck.co.uk free account gives you an idea if they have any cash or a decent net worth.

[mikey k]

Zoon said:

companycheck.co.uk free account gives you an idea if they have any cash or a decent net worth.

Yep seen that, I was wondering if there were any better options for a small fee?

[fridaypassion]

mikey k said:

Not widgets £2.5k to £20k exposure
We try for proforma where we can
But there is the potential for ongoing service revenue so checking them is a good idea for both aspects.

If its a bit of kit the company needs they will pay on pay a good deposit and balance on the day of delivery if they really want it. Easy orders from none payers anyone ca do that

2.5k or 20k is still widgets. If I ordered a bit of kit for my place I would be staggered if I got offered 30 days with a company I have no ongoing relationship with. Dont do it.

[N8CYL]

Credit safe are very good. Also we paid 250 for years subscription.

[mikey k]

N8CYL said:

Credit safe are very good. Also we paid 250 for years subscription.

That seems reasonable