Making a profit and getting paid
In most cases, the aim of being in business is to make a profit. You make a profit by selling something for more than you bought it for, or more than it cost you to make or create. But the crucial thing to remember is that you only make a profit once you have been paid.
There are a number of ways you can increase your chances of being paid, including making sure your invoices are issued as early as possible and are accurate and informative, and chasing for payment as soon as its overdue rather than days or weeks later. You could of course not offer credit at all but insist on payment at time of delivery or even as the order is taken, although this may not be possible and in any case you have still incurred costs.
However, before you even take on a customer, it’s always important to understand exactly who you’re doing business with. Verifying certain details about customers or suppliers can reduce your exposure to bad debt, supply chain problems, fraud and theft.
Now Let’s Get Started has teamed up with business intelligence supplier Riskdisk to offer our visitors FREE trial access to comprehensive company data. New businesses qualify for 3 months or up to 100 searches for FREE. Call Natalie Wilson on 01623 869999 or e-mail info@riskdisk.com and don’t forget to mention Now Let’s Get Started.
Checking company details
Businesses are always advised not to put their financial stability at risk by providing goods or services to new customers without first checking some basic information about the business and the financial history of it and its directors/owners. A basic company check will reveal if the business, whether it’s a limited company, a sole trader or a partnership, is in a stable financial position or if it has a history of not paying its bills.
Changes to customer information and circumstances
But what about existing customers? What if their circumstances change and your chances of getting paid on time (or at all) become more and more remote. If you don’t have a policy of making regular financial checks on your customers you will not be aware of this impending scenario before it’s too late.
What if a customer owes you money and moves office? By regular monitoring you will be alerted to their move so will know where to contact them to chase for payment.
To protect your business and its supply chain it’s equally important to carefully and continually monitor your suppliers’ financial position. If possible don’t rely on a single supplier because if their business fails it could have serious consequences on your own business.
Access business intelligence information and monitor changes for free
Now Let’s Get Started has teamed up with business intelligence supplier Riskdisk to offer our visitors FREE trial access to comprehensive company data including a company monitor service so you are alerted to any changes in a company’s information. New businesses qualify for 3 months or up to 100 searches for FREE. Call Natalie Wilson on 01623 869999 or e-mail info@riskdisk.com and don’t forget to mention Now Let’s Get Started.
Further reading
Check industry literature and websites or this wholesale supplier directory for alternative sources of suppliers.
To help with cash flow and avoid bad debt you could use an invoice factoring or invoice discounting finance solution.
Making a profit and getting paid
In most cases, the aim of being in business is to make a profit. You make a profit by selling something for more than you bought it for, or more than it cost you to make or create. But the crucial thing to remember is that you only make a profit once you have been paid.
There are a number of ways you can increase your chances of being paid, including making sure your invoices are issued as early as possible and are accurate and informative, and chasing for payment as soon as its overdue rather than days or weeks later. You could of course not offer credit at all but insist on payment at time of delivery or even as the order is taken, although this may not be possible and in any case you have still incurred costs.
However, before you even take on a customer, it’s always important to understand exactly who you’re doing business with. Verifying certain details about customers or suppliers can reduce your exposure to bad debt, supply chain problems, fraud and theft.
Now Let’s Get Started has teamed up with business intelligence supplier Riskdisk to offer our visitors FREE trial access to comprehensive company data. New businesses qualify for 3 months or up to 100 searches for FREE. Call Natalie Wilson on 01623 869999 or e-mail info@riskdisk.com and don’t forget to mention Now Let’s Get Started.
Checking company details
Businesses are always advised not to put their financial stability at risk by providing goods or services to new customers without first checking some basic information about the business and the financial history of it and its directors/owners. A basic company check will reveal if the business, whether it’s a limited company, a sole trader or a partnership, is in a stable financial position or if it has a history of not paying its bills.
Changes to customer information and circumstances
But what about existing customers? What if their circumstances change and your chances of getting paid on time (or at all) become more and more remote. If you don’t have a policy of making regular financial checks on your customers you will not be aware of this impending scenario before it’s too late.
What if a customer owes you money and moves office? By regular monitoring you will be alerted to their move so will know where to contact them to chase for payment.
To protect your business and its supply chain it’s equally important to carefully and continually monitor your suppliers’ financial position. If possible don’t rely on a single supplier because if their business fails it could have serious consequences on your own business.
Access business intelligence information and monitor changes for free
Now Let’s Get Started has teamed up with business intelligence supplier Riskdisk to offer our visitors FREE trial access to comprehensive company data including a company monitor service so you are alerted to any changes in a company’s information. New businesses qualify for 3 months or up to 100 searches for FREE. Call Natalie Wilson on 01623 869999 or e-mail info@riskdisk.com and don’t forget to mention Now Let’s Get Started.
Further reading
Check industry literature and websites or this wholesale supplier directory for alternative sources of suppliers.
To help with cash flow and avoid bad debt you could use an invoice factoring or invoice discounting finance solution.