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A regular day can be stressful for an enterpriser and focus is often on solving the day-to-day challenges of the business. The longer-term work to secure future income easily suffers, and many companies have several different and parallel business systems that make the processes more difficult.
One way to keep track of future revenue is to ensure that customers are good payers. “Most companies have clear processes for checking out new customers,” says Mikael Jakobsson, credit expert at Dun & Bradstreet, “but many forget about continuing to check the payment ability of existing customers.”
Statistics show that more than 80 percent of all credit losses come from existing customers. A bankruptcy client not only entails lost earnings, it also costs time and energy to handle the customer case. Preparing petitions and depositions, appearing in court, managing accounting, and so forth, means that valuable time is lost that could have been put into sales, growth and new customers.
“Most companies have clear processes for checking out new customers, but many forget about continuing to check the payment ability of existing customers.”
Mikael Jakobsson, credit expert at Dun & Bradstreet