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Spring 2022 29 Using a credit application form is the easiest way to ensure relevant and appropriate details of the potential customer are being taken. It doesn’t have to be long-winded or lengthy, simply take the basic details you need to open a credit account and protect yourself: • Company Name AND Registration No • The entity of business if not Limited • Names of key people in the business • Contact numbers & email addresses Using a credit application form is one thing but the key to protecting yourself is in the detail and checking the form and information provided for any anomalies is where you will be able to protect yourself the most. WHAT SHOULD I CHECK? Use a credit reference agency to check you have been approached by a bone-fide company. Check the directors of the limited company and see if they have a lot of either active directorships, resignations or insolvent companies. Use your credit reference agency to look at the trading history of the business, have other suppliers experienced non-payment or made enquiries about potential fraudulent applications. Where you can, make a physical visit to the customer or potential customer if something doesn’t feel right to you. If you already have a trading history with the business, look at the orders that have previously been placed. Some fraudsters will establish a good line of credit with suppliers, placing small, regular orders to give the appearance of a good customer. Once an order pattern starts to change, ask questions to establish the reason for the change. ONLINE CHECKING OPPORTUNITIES The internet opens up a lot of avenues to carrying out non-intrusive checks. WHAT IF YOU ARE A VICTIM OF FRAUD? Report it – Call 101 or report to Action Fraud Share it – Sharing your experiences is the quickest way to stop fraudsters in their tracks. Talk to your trade association or industry specific credit information agency who will be able to make others in your industry aware. Look at the addresses you have been given, are they active trading addresses (as opposed to a mailbox)? Is it a residential address when you would expect it to be a business address or vice versa? There could of course be perfectly legitimate reasons for having numerous trading and / or delivery addresses but taking the time to check could be what will save you. Never allow goods to be cross-loaded to unidentifiable vehicles waiting at the delivery location. Search the business name and or directors / proprietor / partners’ names with other suppliers you may come across out of area news reports or other information that will help you. Check phone numbers, dial them or use the internet to search for any reports of misuse. Once a fraudster leaves your depot or takes delivery that is likely to be your last contact with them. Is the telephone number ringing and is it a normal tone? If it goes to the answerphone, is the mail-box full? This is a sign that messages are not being returned. Why would an active business not return and delete messages? Send a confirmation email. We hear of so many people whose initial suspicions of fraud are raised when they email the invoice and the email bounces back. Check it first – a confirmation email thanking the customer for their application or order can help to pre-warn you of any problems and is also customer service-friendly so your customers will see this as great customer service too. IN SUMMARY In short, use the following checklist: • Confirm the details on the application are true, using credit infor-mation, the internet or ID checks • Check the condition of the business applying for goods on credit • Is the order consistent with past transactions or as you would ex- pect it to be? • Satisfy your gut feeling and if you can’t, assess the risk and if needed decline the application. Testing is also important. It will help to ensure new processes and current processes are providing the protection you need. Internally, submitting a fictitious order or application will help you to track if you are getting the desired outcome. << HAE EHA Credit Checks in partnership with Top Service Ltd