What are the main points to consider when taking on a new customer? The same points may arise in regard to your suppliers. If you are starting, or have started a business in Chislehurst, Bromley, Kent and London areas we, at Adiva Accountants in Chislehurst, can help you manage the credit requirements of the business.
It is great obtaining new customers for the business, unless they fail to pay you. You need to check that the customer can support the amount of credit you are giving. If they do not pay, commencing legal action can be a long and costly process.
If the customer does not pay and the goods or services have been provided, your cash flow is going to be under pressure. You will manage your business easier if you can ensure that the customers pay on time.
If you do not pay your suppliers because you have not been paid by your customer, then you could also be damaging their business as well. This is a bad business practice and could be regarded as corporate social irresponsibility. You should treat your suppliers as you want your customers to treat you.