He went on to explain that not only did I need to pay close attention to the financial well-being of my clients, but also the financial well-being of my clients’ clients.
I knew what he meant after he explained himself, but still, the initial shock of his provocative statement stayed with me.
At the time I owned a medium-sized construction company and I regularly performed credit references and checks on our clients. Well, I tried to, anyway.
You see, I found it hard to get the information I needed. Answering my accountant’s question was hard, and it only got harder. The simple fact was, I didn’t always know who my clients were sleeping with.
Fast forward a few years. I was introduced to Trade Credit Insurance and realized how easy it became to answer that all important question: who are my clients’ clients, and how are they doing financially?
I realized that when you have a hard-working Trade Credit policy in place, the policy underwriters help answer that question. They obtain information that accounting departments can’t find or don’t have access to. They look at Dun & Bradstreet Reports; public and private records; and researched if the clients who owed me money were ever involved in legal proceedings or court cases. Then the underwriters cull all the information together and grade the client based on the information they found. And they’re graded just like if they were school students – A through F.
Needless to say, if I’d had this information several years ago I never would’ve said yes to several projects for which I never got paid the full amount…or at all.
So back to the question: Who are your clients sleeping with? Would it surprise you to learn that each day in the United States, 87 new businesses open while 115 companies close their doors? One of those 115 companies could be a client of yours, or a clients’ client… Having a robust Trade Credit insurance policy in place would allow you to quickly asses your clients’ financial well-being…. Help you determine how risky your current client base is…. And predict the risk of new clients.
Knowing who your clients are sleeping with will help you sleep sounder at night. One way to do this is by allowing TCI Advisors to insure your accounts receivables with a Trade Credit Policy. Our staff and our Distinguished Insurance Carriers will make sure you are sleeping in the right bed, with the right clients.
Contact us today to schedule a no-nonsense, risk-free Financial Health Check.