Know the risks and what to ask before extending credit to your customers.
By Gwen Moran | Entrepreneur Magazine – March 2011
Before banks extend credit, they verify the prospective borrower’s credit history and ability to repay, among other things. That’s not as common in the $2 trillion unsecured, or trade, credit market, says Alex Coté, vice president of marketing for Cortera, a credit-risk monitoring service in Boca Raton, Fla.
“I recently spoke with a woman whose business was running into trouble because she wasn’t monitoring her customers’ payments,” he says. “Everything was very late–60 days or more. She didn’t realize it. They were looking at layoffs and, really, the problem was that they weren’t collecting.”
To keep an eye on your customers and their ability to pay what they owe, Coté gives this advice:
Media Inquiries: please contact Alex Coté at 857-403-1370
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