Every rational company
runs credit checks
on new customers,
especially if purchases are large
(i.e. ‘theft’ of that purchase would greatly
hurt the company).
Not as many companies
run credit checks on existing customers
but with bankruptcies rising,
this is a prudent move.
As customers can see
who runs credit checks on them,
it is best to have a policy
(so they don’t feel they’re a concern).
One company I know
runs a credit check every year.
Another runs
credit checks for purchases or balances
over a certain amount.
Credit checks add to the selling costs
and the turn around time
but are well worth it.