Do you know your customer?
It might seem an obvious question, but do you know who your customers are?
In the event of a non-payment it is important to know who is legally responsible for payment, who you could pursue through the courts if you had to.
We have met with prospects this week and through the process of quoting for their credit insurance, we have identified two cases where the companies were not able to identify their contractual principals.
This is not uncommon, especially if you are selling to larger group companies or where a company may operate in different territories, with separate legal entities and or branches of those legal entities.
For clarity, a purchase order which states the customers full details and registration number (if applicable) is best. However the issue may be complicated by T&C's which stipulate that payment will be made by a third party or will be contingent on delivery of goods to another country, so do consider the risk implications of any such requests.
We are happy to help with any questions on these issues.