Top 3 Signs a potential customer is a Credit Risk

How can you tell if a customer might be a credit risk?  There are signs you can look for.

  1. If they shy away from filling out any paperwork, be cautious.  If someone has good credit and nothing to hide they have no problem filling out paperwork.
  2. If they can’t give you a land line phone number or other contact information, this should be a red flag.
  3. If they won’t give you any references, saying things such as I am new to the area, or I don’t have any references, I am trying to establish credit, be careful.

You can still do business with a customer like this but start out as COD or pre-payment required.  Once they fill out a credit application and you check their credit, if they have minimal credit, work with them and offer something such as 50% down and 50% due at delivery.

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