Small Business credit_small.jpg  Credit is at the heart of every successful small business.  Both accessing credit from suppliers and lenders and providing credit to customers are crucial small business management tools.  Here you will find information on how to manage your own credit policies as well as how to figure out what credit products are right for your business.
Clients who won't pay
Cash flow is as vital to a business as oxygen. Savvy businesses won't wait for late payments and are proactively reducing their risks. Here are some tips to help your business reduce the risks associated with poor payers.
What should you consider before extending credit to international customers ?
Have you considered extending credit to international customers If you are considering it you need to ensure that you weigh up the pros and cons. How much will exporting increase sales What if a customer refuses to pay What are the likely costs of pursuing an overseas debt
SMEs with established credit profiles have more options
More than one third (38 percent) of firms have indicated that they are experiencing difficulties as a result of tighter lending standards - this issue is expected to continue into the New Year and it is a key reason why SMEs need to ensure their business credit profile is in order.
When a customer files bankruptcy
It's always a big deal when one of your clients files bankruptcy, particularly if you are the one left with outstanding bills. The last thing you want to be doing at that point is scratching your head wondering what your next step should be.
Establishing business credit
Small business owners are often preoccupied with developing new products or services, but they can neglect something that may increase their odds of financial survival-establishing business credit. Small business owners should take steps to establish credit in the name of their business as a way to preserve cash flow for necessary business operations, purchases and rental payments.
Your credit profile
Every time you seek funds from a bank or try to sign up for a phone plan, an electricity account or an internet service, the service provider will use a credit bureau to asses your credit worthiness. This means understanding the credit application process and the information contained in your company's credit report is critically important, particularly for SMEs who are often impacted by bumps in the cash flow cycle.
Protecting your business from bankrupt customers
Being a small business it is likely that you are dependent on a relatively small number of customers and suppliers. As a consequence, if one of these key contacts goes belly up, the impact on your business will be significant. D&B research shows that one in ten Australian firms are at risk of experiencing significant financial stress or failure in the coming year. With that figure in mind, the need to protect your business from potential risk is clear.
Get paid on time
One of the biggest influences on your cash is your credit risk and accounts receivable function. Late payments and unpaid invoices can have significant detrimental impacts on business cash flow but avoiding the cash flow crunch can be a difficult task.
Planning your business finance
When you apply for finance with a lending institution they will want to know a lot of detailed information about your business. Being an SME, they will also want to know about your own personal credit history. The best way to tackle this situation is to be prepared  - go into that meeting armed with all of the information they could possibly need and more!
Types of credit available to small business
With all the credit providers and products available it can be confusing to determine what product is best for you. Each can be useful however the key to getting the right finance is to understand what each offer means and how it is best used.

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