Credit checking your customers and setting credit limits
Credit checking customers: information sources
Other sources where you can get information on potential and new customers include:
- Companies House - for checking a limited company's accounts
- Northern Ireland Courts and Tribunals Service - for information on the Enforcement of Judgments Office (EJO) cases
- The Insolvency Service - a registry of individual voluntary arrangements and bankruptcies
- Chartered Institute of Credit Management - league tables of payment times for all public limited companies in the UK
- local newspapers
- online searches of individuals and businesses
If you are still unsure about the creditworthiness of a customer, you could consider having a third-party guarantee. This is a legally binding agreement with a third party that they will pay if the customer does not.
You also need to make sure your terms and conditions are correct for any credit you set up - see invoicing and payment terms.