With all the uncertainty around with Brexit there are a number of storm clouds over the UK’s economic horizon, so now is not the time to be experiencing unexpected bad debts. There is never a sure way to avoid a bad debt but if you don’t monitor suppliers and their credit ratings then you are more or less asking for trouble.
Routinely I check my suppliers credit report around every 3 months so I get feel for how they are performing financially and if their latest filings at companies house reveals anything I feel I need to be aware of.
Sometimes it can be as simply as a drop in sales or that cash is falling and creditors are rising, these little issues can sometimes represent a wider issue developing in a business.
Using Reporting Accounts on a regular basis tells you what you need to know, what the latest accounts show and if any filings are overdue and so on. We really recommend you keep an eye on things as otherwise you will kick yourself if you end up losing money.
So avoid problems that a credit report would reveal and start the habit of visiting Reporting Accounts every day and checking into your suppliers.