Risk identification
When you have won a new customer, if all goes well, you also identify the default risk at the first step: risk identification. The risk hidden with debtors is that your debtors will be non-payment or late payment. In many cases, this is a risk. It is wise to include measures in management regarding debtor risk. Apart from credit information from an independent source or insurer, it is necessary to be sure that you are actually doing business with the person posing as your customer.
Take action
You can take a number of measures. Do an identification check, Chamber of Commerce check, take fraud prevention measures and make clear payment agreements. Part of a deal can also include handing over your general terms and conditions and having them signed. This will help you set up your debtor management and possible follow-up steps in case the debtor does not pay.
Managing debtor risk with credit insurance
Another measure to manage debtor risk is to take out a credit insurance. There are several risk management measures hidden in this. These include doing a creditworthiness check of the potential customer. In addition, credit insurance also offers collection services where you are insured for collection costs to the extent that the principal amount is covered. And should your customer go bankrupt, 90% of the claim is insured.
