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Q: A supplier is credit checking me. What can I do?

Oct 22 2008

Answered by: Jo Ray Ask a question

More suppliers will be checking for creditworthiness in the current climate and there are number of steps you have to abide by.

There are four things you will need to do:

-    provide two trade references
-    show a balance sheet or set of latest accounts
-    permission to approach your bank for a reference
-    other information as a result of the investigation

As with any credit check, an agency may also be approached to check on your credit worthiness. In the beginning, when you have no trading history, you may have no option but to pay upfront or provide some kind of personal guarantee – unless you can prove your business has the necessary liquidity.

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