Analyzing Customer's Credit

As the economy continues to bounce along the bottom, it has become more and more important for my clients to perform a thorough credit check of their customers. Depending on the size of your company there are a variety of methods for you to use to understand the credit worthiness of your customers. The following are some tools that you should consider using when evaluating how much of a credit line you should provide them. These tools include:

1. Credit Application for all new customers
2. Authorization to discuss bank information with financial institutions
3. At least 4 trade references
4. Customer Financial Statements
5. Z Score Analysis
6. Personal Financial Statements of Principles
7. D&B Reports

If you are interested in discussing these tools and any other financial matters, please contact our firm, Brian D Kurtz PC at (843) 971-5866 or e-mail me at brian@bkurtzcpa.com . Our firm specializes in providing a full range of financial services to Small to Medium size businesses in both South Carolina and North Carolina. We would enjoy the opportunity to help you manage your company risk!