Contractor Members,We have a well developed credit grarnting process for new customers.Credit Application Required to be signed and the application includes collection terms as well as a personal guarantee. 50% of the time we have the personal guarantee signed. This is most common on small and new companies as they understand the need.Pull the Construction Board Licenses Information and make sure there are no bad marks or open claims with the State Board.Pull the Secretary of State information to verify that they are licensed with the state.Request Credit information and Bank Information from the information provided on the credit application.From the above information if we want to offer credit and establish a credit limit for those approved. As an aside note 95% of the applications are approved and the credit limit is based upon the anticipated volume and the information found on the Credit Reference returned.We also use the Credit Application it setup the Custom set in AR.Recently we started using Cortera to get additional information.Questions here are:
Do you use Cortera?If you use Cortera how are you integrating it in to credit decision making?If you use Cortera is it your sole source for credit decision making?
Any other thoughts ion making credit decisions for small to medium sized entities woukld be appreciated.
Thanks you in advance.
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