Which customers should I offer payment terms to?

Which customers should I offer payment terms to?

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What do I need to know about before offering my clients payment terms?

It’s sensible to check your customer’s trading situation and validate that they are who they say they are before you do any business with them.

There is a wide range of public information available, which can be found in places such as the Companies and Intellectual Property Commission and court records. You could also consider obtaining trade references.

When offering payment terms, checking their creditworthiness is a must. This can be achieved by purchasing a credit report from a credit bureau.

A credit report can provide you with an indication of how long a business will take to pay you and the likelihood of the business failing in the next 12 months. It may also include the public information and trade references mentioned above.