Page 85 - MICROHUB Handbook - ENGLISH

Small businesses must be picky about who they hire and run a credit

check on potential clients before agreeing to deal with them. It takes a

strong will to reject prospective new contracts based on a credit check,

but doing so can be the best thing for your company. Assuming a

prospective client has a great credit history and you're willing to provide
your products or services, the next step is to make sure they are aware

of the conditions under which you are willing to conduct business.

Although you could first agree on your payment terms verbally, you

should make sure that verbal agreements are followed by written

agreements that are absolutely clear on the terms of payment.

Building relationships with those who will be making the payment is

always good since it lowers the possibility of payment delays. Delays

may be minimised by making sure the invoice was delivered to the

appropriate location and has all the relevant information. It's also a

good idea to inquire about potential delays in payment before
submitting the invoice because most individuals will make every effort

to keep their promise.

In any small business, financial documents are essential. They may be

used for a variety of things, including internal revenue and tracking

spending and demonstrating your company's

viability to investors and lenders. Keeping

up with your financial planning and f

orecasts can also help you see possible

problems before they happen and

provide you with the information
you need to decide how to run

the company.

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