As an entrepreneur, you know better than anyone that every time you send an invoice to a customer, you run the risk that the claim will not be paid. This leads to risks to your company's cash flow and profitability. One large unpaid invoice can jeopardize your company's growth or even bankrupt. Defaults can also lead to liquidity problems, preventing your company from making the desired investments.

That is why we want to inform you in this newsletter about the signs that may indicate that your customers are in trouble. When you recognize these signals, you can respond to them and protect your company against the risks of debtors who don't pay.

Signs that your customers may be in trouble:

1. Late payments: If your customer tries to change payment terms or no longer complies with the payment agreement, it is likely that they have a low cash flow.
2. Questionable credit decisions: If your customer has made an abnormally large deal with a suspicious party, be wary. His problems can become your problems if he does not have good credit management at this party.
3. New funding: If your customer is always trying to get new loans or changes banks regularly, they can do this because the current bank no longer provides credit. Be alert to this!
4. Increase in controls: If your customer is continuously supervised by lenders, this may mean that they have difficulty paying creditors.
5. Apologies, apologies, excuses: Non-stop excuses from your customer for not paying can be a signal that there are payment problems.

What can you do to ensure that the invoice is paid?

If you follow all the steps correctly but no payment follows, this can have a huge impact on your business. One of the most common solutions for this is to use credit insurance. With credit insurance, you have more certainty that your invoices will be paid. You are then not at risk if your customer goes bankrupt or applies for a suspension of payments. Your invoices are then paid by the insurer. The largest credit insurers in the Netherlands are Nexus Trade Credit, Atradius, Coface, Mercury, Allianz and Credendo.

In addition, it is important to ensure a clear E2E (End to End) process that provides clear tools for the debtor department. This ensures that your debtor management is structured and that you comply with all steps to minimize your risks. Learn how Kröller Capital can improve your debtor management. Contact us today and let us help your company optimize your cash flow.