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How to Check a Customer's Credit Worthiness

Know the risks and what to ask before extending credit to your customers.

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This story appears in the March 2011 issue of Entrepreneur. Subscribe »

Corrections & Amplifications

Before banks extend credit, they verify the prospective borrower's credit history and ability to repay, among other things. That's not as common in the $2 trillion unsecured, or trade, credit market, says Alex Coté, vice president of marketing for Cortera, a credit-risk monitoring service in Boca Raton, Fla.

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