Feb 6, 2024 3:20:24 PM •
Written by: Georgia Reynolds
When it comes to agency work, where projects often involve significant investments of time, resources, and money, it's crucial to ensure that the clients you're partnering with are financially reliable. This means being confident that they can meet their financial commitments and obligations. Did you know that according to recent studies, around 60% of businesses experience late payments from clients, causing financial strain and disruptions to operations?
In this blog, we'll talk about why it's a good idea for agencies to check their clients' credit before taking on jobs.
" 60% of businesses experience late payments from clients, causing financial strain and disruptions to operations"
Benefits of credit checking Understanding financial stability: Checking your clients' credit helps you see how stable they are financially. This is important because it gives you an idea of whether they can meet their financial commitments, especially in situations where money transactions are involved.
Reducing risks: By doing credit checks, you can reduce the risk of potential issues. Finding any financial red flags early on helps you make informed decisions, lowering the chances of problems like late payments or not getting paid for your services.
Making informed decisions: Including credit checks in your client evaluation process allows you to make smarter decisions. Knowing your client's credit history gives you a full picture of their financial behaviour, helping you tailor your approach based on their financial reliability.
Protecting against financial challenges: Proactively checking credit protects your agency from unexpected financial challenges. It adds an extra layer of protection, making sure you're aware of any financial issues that might affect your projects or services.
Building trust for long-term partnerships: Making credit checks a standard practice builds trust and transparency. Clients who understand the importance of financial responsibility are more likely to contribute positively to long-term partnerships.
How to include credit checks in your agency's process: Create a simple process: Make a straightforward process for checking your clients' credit. Having a consistent way of evaluating financial stability ensures fairness for all clients.
Use reliable credit reporting services: Engage trusted credit reporting services to get accurate and up-to-date credit information. Reliable services enhance the effectiveness of your credit check process.
Make credit checks routine: Integrate credit checks smoothly into the client process. Making it a regular step helps you assess financial stability without causing delays.
How we can help! To put it simply, Giant Finance+ makes checking credit easy for you. You will be assigned a dedicated Credit Controller who will get to know your business along with your clients. They will be your point of contact for all things credit, and debt-related, spotting trends and identifying issues before they become a problem. We perform the extremely time-consuming task of credit control for you so that you can concentrate on what you are good at, recruitment! We also provide bad debt protection as a standard for all our agency clients too!
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