Be selective about the organisations with which you intend to do business. This can be difficult if you are dependent on a few large customers or if your customer base is dwindling, but once your business has reached a manageable level of stability it is a good idea to research all prospective clients. You should:
• Obtain credit references on potential customers
• Avoid doing business with companies with poor credit ratings
• Ensure that the prospective customer knows your payment terms from the outset
This post was brought to you by Mathew Aitken at Companies Made Simple – The Simplest Company Formation Service
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