Carrying out a company credit check should be a habit all businesses get into before offering credit for goods or services. It provides an integral part of keeping your cash flow healthy, but it’s something that is overlooked by many businesses and can cause serious problems down the line. Whether an individual wants to open up a new customer account or if a business wants to extend their credit limit, it’s sensible and good practice to ensure that they are able to meet their obligations. Carrying out a company credit check will allow you to make an informed decision when setting the credit limit for this new or returning customer. Carrying out these checks on returning customers is advisable on an annual basis or if they have become slower with payments as it will mean that you can adjust their limit accordingly and reduce the risk to your business. Company credit checks will help to protect your business from the threat of bad debt. If you make it part of the process when taking a new customer on, it could not only save you time and money, but it will grant you peace of mind when carrying out transactions with the customer. You wouldn’t expect to walk into a high street shop and be offered credit without a credit check first, would you? So make sure you regularly carry out your company credit checks.