Protect your business from risky relationships
It’s funny how we separate the way we act in our business relationships from the way we do in our personal ones. We might be really organised at work, but our home lives are completely chaotic. Maybe in meetings we have total authority, but at home, our kids walk all over us!
The same is often true when it comes to choosing those relationships. We show completely different values and priorities. Let’s look at an example…
Say, you’re going on a first date (for some of us, first dates might seem like a distant memory but stick with me here!)… Chances are you’re going to be on your guard. Silently assessing your new companion to see if they’re worthy of a second or third date. You’ll check out their appearance, ask them about their interests to see if they’re a good match. You’ll get a sense of their moral fibre – do they seem honest? Are they kind? The list goes on…
After all, these things are important! You don’t want to be stuck with someone who bores you, who you find obnoxious or, worse still, who might deceive you in some way.
What about when you’re striking up new business relationships? Does that same care go into it? Whether it be a new client or customer, it’s still important to make sure that you’re not putting your business at risk. A recent study by Bibby Financial Services showed that more than a quarter of SME’s have been forced to write off bad debts in the last year – that’s around 1.4 million businesses!(1)
So how can we protect ourselves from risky business relationships? We can’t very well invite a prospective customer on a date!
Conducting a business credit check is a great equivalent (and costs less than a fancy dinner!). This is a simple way to ensure your business (and your business to business) relationships have minimum risk of bad debts and subsequent damage to cash flow.
Going back to our first date example, a credit check gives you the information that allows you to assess whether you want to continue the relationship. It means that your business relationships can be built on solid foundations.
Monitoring them helps you to build on them and ensure that they remain strong. Should situations change and become riskier, you’re made aware of this and are able to be pro-active in protecting your financial security.
At Experian Business Express, we want to nurture our relationship with you and so we’re offering a free trial of our Business Check service. That way you can try it out – risk free! (See what we did there?) We hope you’ll find it helps you to build stronger and safer business relationships.
Source: 1 Bibby Financial Services
Are you looking to minimise your business’ exposure to bad debt? Qualify your customers, suppliers or contractors with Experian UK Business Credit Reports. Speak to one of our agents today to claim your free trial.