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Why do You Need a Credit Report?
There a number of reasons you should credit check customers:
- Who are you granting credit to?
- Accurately assessing your customer's worth helps with your credit decisions and
setting credit terms.
- It will verify the correct legal entity you are trading with, which is vital if
the debt becomes delinquent and you have to take action for its recovery.
- By monitoring your customer's performance during a course of trading you will be
alerted if their financial position deteriorates. This will allow you to reassess credit
terms and if the account is in arrears assist with further decisions you may want to take
for its recovery.
- For delinquent accounts, credit checks are important before instructing recovery
action as a final way of verifying your customer's legal status and whether other
creditors are pressing for payment.
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