Seven Ways To Weed Out Bad Customers

As you work on improving your collections ask yourself the following questions about your clients or customers in order to decide if you want to continue doing business with them. This can help you decide if they are too much work or hassle or if they are a good customer.
 

•    Do they have a pattern of paying other suppliers late and some on time? If yes, why?
•    Are they often past due with other bills? Which ones and why?
•    Have they run into financial problems causing them to pay later each month?
•    How long have they been in business and how have they been faring?
•    Who are their customers? Do they check their customer's credit before making a sale?
•    Do they have any competition? How does the competition look compared to them, are they doing better financially?
•    Do they have any collection accounts, liens, U.C.C. filings or judgments against them?