1. 6 tips to prevent payment defaults?

6 tips to prevent payment defaults?

Take measures to prevent payment defaults.

Companies often face risks in business. It is unexpected, but it is often existing customers and suppliers who pose risks. How often do you hear the phrase, "I never noticed anything"? The first signs only arise when it is already too late, namely when payments are not made. Defaulters hinder a company's growth and pose a threat to its continuity. Therefore, it is important to take steps to prevent payment defaults. Creditchecken is happy to provide you with several tips.

  • Check new customers:
By checking the creditworthiness of a customer or company in advance, you gain insights into the amount it is responsible to deliver products or services on credit. If data shows that it is not actually advisable to do business with a company, it is recommended to work with upfront payments. It is not only advisable to check new customers through a credit report, but also to continuously monitor existing customers. While a customer may appear positive in a credit check today, their financial situation may be very different tomorrow. By continuously monitoring existing customers, you will be automatically notified when problems arise. This prevents surprises with non-paying or poorly paying customers.
  • Document agreements:
It is advisable to include payments, payment terms, and invoicing methods as part of your onboarding process. The payment term is important to make the costs and therefore the price of your product or service transparent. Document the agreements made in the general terms and conditions. This creates clarity and awareness around the agreements made and prevents a customer from suddenly claiming a different payment term.
  • Send invoices promptly:
Once you have completed tasks or work, it is advisable to send the invoice as soon as possible. By communicating clearly about your invoice, a customer sees that you take payments seriously and the invoice and performed work are still fresh in their memory.
  • Set the right example:
When you ask something from the customer or a company, a first step is that others have no complaints about your product, service, and payment behavior. This also applies to the timing of your own bill payments.
  • Send reminders:
When dealing with a customer who fails to meet their payment obligation, take immediate action. It is advisable to send a reminder within a week. Perhaps not always necessary, but it is never wrong to give compliments when things go well.
  • Initiate debt collection:
If reminders are ignored, it is time to initiate a debt collection process. Creditchecken is happy to assist you with this. We successfully collect outstanding payments! 92% of our cases are successfully closed in the amicable phase. Creditchecken operates on a no cure, no pay basis. This means that if we cannot collect, no costs will be charged. The costs must be legally settled by the debtor. Creditchecken provides a solution to prevent payment defaults

Creditchecken protects businesses from damages caused by unpaid invoices. When you have provided a service, you expect to be paid for it. Similarly, when a legitimate invoice is sent, the recipient should also make the payment. Creditchecken allows you to check the creditworthiness of your business relationships in advance. Feel free to contact us to see how we can facilitate safe and straightforward business transactions for you.

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