Did you know that today more than 90% of companies encounter late payments and 1 in 3 invoices are not paid on time? Prevention is therefore better than cure. Here are some precautions you can take to reduce the risk of defaults op payment.
Default of payment
Enough of defaults of payment? Discover our tips to avoid defaults of payment.
How to avoid defaults of payment?
Avoid defaults of payment with our customer check
How to manage defaults of payment?
Invoices: we all prefer the outgoing to the incoming kind. However, in both cases, it is best to get it over with as soon as possible. Nevertheless, outstanding customer invoices are often a delicate matter. Learn here how to better manage your defaults of payment.
Install alarm bells
Alarm systems are digital tools that keep track of your incoming and outgoing invoices. Do not use this reminder system for when it is too late: set an alert a few days before the due date.
Send a reminder
The same goes for your communication towards customers: there is no need to wait until the deadline has expired. On the contrary, a little forget-me-not before the due date is more sympathetic than a first formal notice once the deadline is past. Moreover, this increases your chances of being paid.
Discuss with your customer
If no payment is forthcoming, you should react as quickly as possible. Discuss the matter with your customer and try to agree on a solution. To maintain a good commercial relationship with your customer, an amicable settlement is often the way to go.
Look for an external partner
If the water between you and your customer has become too deep, a professional debt collection agency can assist you. A debt collection service makes an objective assessment and has plenty of experience with difficult negotiations.
Take out insurance beforehand
Take out a trade credit insurance to minimize the losses from defaults of payment.
How to protect your company against defaults of payment?
Protecting your company has never been so important than now. Especially in this crisis period, you are never safe from the default of payment or the insolvency of one of your customers. Very often bad payments and insolvencies lead to a snowball effect. This creates risks for the cash flow and profitability of your business. A large unpaid invoice can jeopardise the growth of your business or eventually lead you to insolvency.
A trade credit insurance protects your business against the risks of defaults of payment and insolvencies of your customers:
Information
We monitor the financial health of your customers
Collection
We take care of the collection of your unpaid invoices
