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Know Your Customer
It is easy to avoid potential losses to your business by ensuring you know your customer before doing business with them.
We see many clients who have supplied goods or services to customers that fail to pay. When it comes to bringing a claim to recover the debt, they don’t know exactly who their customer is or haven’t checked that the customer is good for the amount of credit granted.
If proper credit checks haven’t been carried out then even if a Court orders your customer to pay, there is always a risk that they will simply be unable to do so.
Remember a sale is not a sale until the invoice is paid!
‘Know Your Customer’ policies are becoming increasingly important globally to prevent identity theft, financial fraud, money laundering and terrorist financing.
For further guidance, read our ‘Know Your Customer’ top tips to minimise the risk of bad debt.