Imagine this: you sell a valuable product to a customer. You deliver it neatly, and the customer promises to pay within 14 days. You think, “That’ll be fine.” But then—despite several reminders—radio silence. No money, no response, and no product left. Could you have prevented this headache? Absolutely!
Trust is good, getting paid is better
With a creditworthiness check you can quickly see whether your customer is financially healthy and what your debtor risk is. You can find out whether they pay on time, what their risk of bankruptcy is, who the directors are, and up to what amount you can safely do business.
But what if that check doesn’t look so good?
Sometimes you’ll see that a customer looks financially weak on paper, but you still want to do business. Or you have a loyal customer who suddenly shows signs of financial trouble. Even then, there are ways to limit your risk. Below are a few examples. Of course, there are other options too—we’re happy to think along about what fits your situation best.
- Suretyship or guarantee : have a third party co-sign, such as a parent company or director.
- Pledge or mortgage right : obtain the right to sell an asset belonging to your customer if payment is not made.
- Retention of title : remain the owner of the goods you supplied until payment has been received.
- Shorter payment term or advance payment : ask for your money sooner. This gives you clarity more quickly and lets you act immediately if problems arise.
- Penalty clause : agree on a penalty if the customer fails to deliver or pay on time. An extra incentive.
Feel free to contact us—we’ll set up the securities for you. That way you can be sure everything’s in order and sleep soundly again.
