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Firms 'losing out due to lack of checks before trading'

Date Added: 20/04/2011  

Company bosses have been reminded of the dangers of not conducting the right checks before agreeing to trade with another organisation.

According to research released by Creditsafe, almost half of all businesses have lost money after not completing the required due diligence before setting up a trade.

Some seven per cent of UK firms have been a victim of fraud after not carrying out the right follow-ups, while only a third of organisations claimed to run credit checks on those they trade with.

David Knowles, business development director at Creditsafe, stated that there can be "immense" pressure on firms to deliver goods and services within a specified timeframe.

"Even if firms do not have time to sign a contract there is no excuse for failing to complete the most basic due diligence exercises," he said.

David Kern, chief economist at the British Chambers of Commerce, recently urged the government to make sure positive trade figures are capitalised on.

Posted by Michael Beam 

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