Credit worthiness of external customers

Consider if it is reasonable to obtain payment in advance of any income generating activities to remove the need for offering credit. Should you decide to trade on credit terms you must assess the associated credit risks.
Credit risk is the risk of default on a debt that may arise from a customer failing to make the required payment. There are certain activities that may present a higher risk of payment delay and dispute that must be considered.
Contact the University’s Credit Control team before agreeing to supply goods and services on credit, that is, without receiving payment in advance. Credit checks must be requested for:

• new customers
• existing customers, previously below trading threshold of £1000 yearly
• existing customers with no activity for over twelve months

New customers

No agreement should be entered into without a credit check being performed.
To initiate a credit check, email the details to Credit Control. This is a free service to institutions and covers limited companies and non-limited organisations. We cannot conduct credit checks on individuals. 
The results of the credit check and the supporting credit reference report will be emailed back. The credit rating, limit and other key information provided should be used to guide your decision on whether to offer credit or not, the limit, and any subsequent collection activities.

Existing customers

For customers already trading with the University, e.g., have an existing customer number on UFS, the Credit Control Team will check the settlement history and the current total balance due, to establish if there is a potential credit risk. For existing customers who have not been active for more than 12 months, a new credit check must be performed.
 

Latest version 16 April 2024