Practical guide to avoid defaulting on payments in your company

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Avoiding default is definitely the order of the day. Research reveals a still worrying situation, in which the number of companies in debt has reached its highest level in a period of seven years. The data comes from the National Confederation of Retail Managers (CNDL), together with the Credit Protection Service (SPC).

The increase recorded in the latest survey was 9.36% between September nepal phone number list August 2018, which has negative repercussions for the economy. For companies in default, it is becoming more difficult to obtain business credit. And for you, who sell products or services, there is a pent-up demand and a perception of insecurity for installment sales with corporate clients.

To avoid the increase in these unpromising statistics, there is no other way than to avoid bad payers. Are you interested? Check out the solutions that are within your reach in a guide made for you!

Do a good credit analysis
It's better to prevent a fire than to have to put it out, don't you agree? Based on this analogy, to avoid defaulting on your debt, you can anticipate it by carrying out an accurate credit analysis. Mind you, this doesn't mean that your business will remain protected from everyone who comes to ask for credit, because if you do, you'll sell less.

An efficient assessment process is one that weeds out bad payers before they even think about applying for credit. At the same time, it is not so restrictive that it scares away people who are able to make installment payments.

If the word balance came to mind, then you are on the right track. Some methods available for a well-considered analysis are:

queries to credit protection agencies;
purchase records with your establishment;
relationship history ;
documentary analysis.
Regarding the evaluation of previous purchase records and relationship history, everything will depend on maintaining a permanently updated record. There is software developed to act as a virtual “sweeper”, that is, the socioeconomic information of your registered customers is updated in real time.

This is possible through robots, which consult publicly accessible databases, social networks and other repositories open to research.

Send due date reminders
In keeping with the goal of stopping a fire before the first spark is lit, it is essential that you anticipate defaults by reminding your customers about their payments. In this regard, if your company has a database with a comprehensive business history, all the better.

For example, imagine a customer who has been buying from you for five years. In your records, you can see that he always pays his installments on the 15th of each month. Therefore, it is prudent to always send your reminders before this date, since this is when the customer usually honors his commitments.

Do this with everyone who has outstanding invoices and your default rate will probably be reduced in the medium and short term.