Make sure your clients are stable before entering an agreement.
Protect your business against financial risk
Losing a customer to insolvency can be extremely challenging, with your business not only likely to lose revenue but also any money owed through unpaid invoices. Most businesses never get this money back and have to absorb this as bad debt.
This is why it’s imperative that businesses monitor the financial health of their customers to minimise any risk to your business. At Red Flag Alert, we have written a full guide to help you understand what to do when finding new prospects and clients, we will discuss:
- The insolvency threat
- Financial health in ideal customer profiles
- Determining the financial risk of prospects
- Performing due diligence on suppliers
- What to do when a customer becomes a risk
- Finding low-risk clients
Download our free guide today to find out more about what your business can do to avoid working with financially risky businesses and how you can mitigate the damage to your own business if a current customer becomes a risk.