Checking peoples credit

[wowava]

Hello there,

We are an E-commerce developmet firm and want to offer monthly payment options to our customers. Any suggestions about checking credit and ensuring we won't get people opting out of their payments after we have already completed their site?

Thank you for any advice.

[Dreamquick]

There are a large number of businesses offering credit checking services, a quick search will turn up more than you can shake a moderately sized stick at.

Picking a good one might be more tricky - maybe talk to your local chamber of commerce for suggestions, or even research it a little and find out if they need to be licenced where you live; if so then their governing body would normally carry a directory of it's members.

- Tony

[moose606]

I would recommend going to an office supply store, and picking up a standard credit application. Use this as a starting point, and include a personal guarantee on the bottom. This way you can determine the creditworthiness of a customer, and also have them sign a personal guarantee at the same time. This will allow you some legal standing should the customer turn into a deadbeat. Just make sure they sign it before extending credit. And, make sure to call and check all of their credit references. Also, set up a standardized procedure for establishing credit, and what to do when things go wrong.