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WEC - Western Engineered Containment
Copper Tip Energy Services
Hazloc Heaters
WEC - Western Engineered Containment
Hazloc Heaters
Copper Tip Energy

Avoid Getting Burned – Know Your Client – Factors Western

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One of the most important, and often overlooked aspects for businesses working with other businesses, is knowing your client.  Your clients’ ability to pay your invoices if changes in the market place occur, or they are hit with a sudden burden, can be the difference in your own company’s survival.  All too often the risks are overlooked due to the need to increase sales, or the promise of large profits.   Performing proper due diligence through credit checks and references can make the difference between getting paid at the end of a project, or not at all.

Here are some of the steps you can take initially to help avoid future problems.

  • Use a Credit Service to pull a credit report on the company
  • Have them fill out a Credit application, with references.
  • Ensure you call the references to get any information they can tell you about your client
  • Ask your client if they will share basic financial data about their company.
  • Ask your client lots of questions about past projects, ongoing work, size, # of employees, gathering as much information as possible.
  • Make an informed decision with the information you have collected.

Factors Western Inc., a factoring company engaged in buying Accounts Receivable to assist companies with their cashflow, has been performing due diligence on companies in Western Canada since 1985.  A Factoring company will always assess the companies their clients are working for, to ensure the Receivables are of good quality and will qualify for factoring.  Utilizing a factoring service can not only benefit your cash flow, it can also give you the credit information to make the right decisions and know who you are working with.  Factors Western does not charge an extra fee for assessing your client’s ability to pay their bills.  In fact we encourage our clients to call us when they are bidding on contracts to know if their client will qualify for factoring and therefore have sufficient credit.


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