Entrepreneurs and small business owners carefully scrutinize every decision, down to the cost of paper clips. But, ironically, many neglect to vet the biggest potential source of risk to their business – their own customers and clients. Even just one non-paying customer has the potential to sink a company.
Business credit reports have long been a staple in the finance departments of large companies, but their high cost has prevented many small businesses from using them in the past. Fortunately, as innovation and competition drove down the cost of reports in the last ten years or so, many small business owners, concerned about protecting themselves from getting stiffed by customers are starting to use business credit reports to minimize their risk of unpaid invoices.