1. Check the customer’s credit
When you allow customers to pay with a credit card, the credit card company assumes most of the risk if the cardholder fails to pay their bill. But when small business owners allow customers to pay on credit via check or invoice, the business takes on the risk of the customer’s bad debt.
To mitigate risk, some small business owners, or their credit department, will evaluate their customer’s creditworthiness before extending credit. You can run a credit history check on customers through one of the three major credit bureaus, TransUnion, Experian, and Equifax.
