Risk identification
When you have won a new customer, you should also identify it debtor risk in the first step: risk identification. The risk hidden in debtors is that your debtors non-payment or late payment. In many cases that is a risk. It is wise to include measures in management regarding debtor risk. In addition to credit information from an independent source or insurer, it is necessary to be sure that you are actually doing business with the person pretending to be your customer.
Take measures
You can take a number of measures. Carry out an identification check, Chamber of Commerce check, take fraud preventive measures and make clear payment agreements. Part of a deal can also include handing over and having your general terms and conditions signed. That will help you set up accounts receivable management and any follow-up steps in the event that the debtor does not pay.
Manage debtor risk with credit insurance
Another measure to manage debtor risk is to conclude a credit insurance. This contains several risk management measures. For example, you can do this in advance credit check of the potential customer. In addition, the credit insurance also offers collection services where you are assured of the collection costs to the extent that the principal amount is covered. And if your customer goes bankrupt, 90% of the claim is insured.
