The Importance of Running Credit Checks on Potential Customers

Before you enter into business with a new customer, you stand to benefit if you perform a credit check first. Lumbermens credit reporting allows you to identify the strengths and weaknesses of your potential customers before any agreements are reached. Your customer’s credit history can provide you with the information you need to assess risk, determine possible payment patterns, and uncover any possible conflicts of interest. It will help you avoid taking on bad debt.

To start a conversation with us about credit reporting, or to have us run a credit check on a potential customer, contact us by telephone at 1-800-761-2072, or fill out a contact form on the Lumbermens website.

A Credit Check Helps Identify and Mitigate Risk

When you perform a credit check on a potential customer, you are able to see the information you need to identify and mitigate risks. The customer’s credit history can speak to their ability to consistently pay on time, which reduces your risk of receiving late or missing payments.

Credit history is extremely helpful when vetting a new customer, as it can prepare you for potential problems which could negatively impact your business and possibly your own ability to pay your creditors on time.  It can help you maintain positive cash flow.

Credit Reporting Gives You Confidence in Your Customers

A credit check does more than just identify and mitigate risk; it provides insight into your customer’s potential to make payments on time, navigate tough financial issues, and withstand business hardships. In other words, it will provide real world data about your customer’s credit history and ability to pay within your terms allowing you to gain confidence in your decision to choose a certain customer over another. Decisions such as these are an important part of ensuring a consistent and available cash flow.

Get Access to the Lumbermens Credit Database

Through the Lumbermens credit database, you can have access to an ever-growing catalog of credit information that have already been conducted against many Canadian and U.S. companies. The credit database is continuously updated and curated to ensure the most recent credit information is available. This information is available 24 hours a day, 7 days a week through our web portal.

All of our Lumbermens members have full access to our credit database through a web portal, providing them with the information they need to identify risk and vet customers at a glance. To learn more about becoming a Lumbermens member, please contact us at 1-800-761-2072, or leave us your contact details on our website and we will be in touch as soon as possible.