A major customer, or indeed any customer defaulting on a payment is something that can have a huge impact on a business. When you acquire a new customer, how do you know what credit terms to offer them? For most businesses, it’s a case of guesswork or assumptions based on similar customers and just hoping they don’t get their fingers burnt.
Any customer – new or long term – is unlikely to tell you if they are in difficulty. Often the first warning is when an invoice isn’t paid on time.
The fact is that the majority of businesses are woefully uninformed about the financial status of their customers. You could always look on Companies House for information, but that gives you just a snapshot in time not the current situation. The problems of most businesses are not played out in the media as were BHS and Woolworths, so it comes as a bit of a shock to those affected. To be fully protected, a business needs constant access to live data on all of their customers so that any warning signs are spotted early and steps taken to minimise the impact.
This is where Red Flag Alert (RFA) comes into its own as it has the details of every single UK business. And RFA receives over two million updates a month, so nothing can slip under the radar. You can set alerts for all of your customers and RFA will automatically notify you whenever anything changes. RFA checks for any of the 42 known trigger events that suggest a business is having problems and allocates a score from its unique health rating system, meaning you are in procession of all the facts all of the time.
To discuss how Red Flag Alert can help you and your business, please call us on 0344 412 6699. Lines open 9am to 5pm Monday to Friday