Business Credit Alerts

Here are some red flags that may indicate that a trade debtor (customer) might be in serious financial difficulty:

The debtor will not take your calls

The debtor does not return your messages

A customer stops discounting your invoices

Your customer stops paying your invoice on time

A customer’s payment pattern worsens dramatically

When you place the account on credit-hold, the company offers to pay cash-on-delivery for future shipments but can offer no commitments relating to how soon the past due balance will be paid.

The customer starts making and then breaking payment commitments. When asked for an explanation, the debtor indicates that funds earmarked for you were instead sent to other, more critical suppliers

The debtor starts lying to you

When one or more checks are returned due to Insufficient Funds

You learn that one or more key executives have left the company

You notice that a debtors’ staff turnover is high 

The debtor contacts you to discuss an extended payment plan

The customer proposes a payment moratorium

Your customer hires a workout consultant

The debtor company is for sale

You are told payment is delayed until a new loan is finalized

You learn that a past due customer is now looking for an alternative source for the products or services your company provides to them.

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