Granting a business partner extended payment terms without a prior credit-risk check is functionally the same as issuing an unsecured loan.
Granting a business partner extended payment terms without a prior credit-risk check is functionally the same as issuing an unsecured loan.
Granting a new business partner standard extended payment terms, without checking their financial stability and payment history, exposes the company to a risk that is essentially identical to lending without a creditworthiness assessment.
Publicly available financial statements and registries give a basic but useful picture of a partner's financial stability before a more significant credit exposure is granted through payment deferral.
Periodically reassessing the credit risk of existing partners, not just at first contracting, catches a deteriorating financial situation before it results in an unpaid invoice.
Clearly defined credit-exposure limits per partner, aligned with assessed risk, prevent excessive exposure from accumulating through a series of individually small decisions.
Autor: Nermin Sefić, GNK ASG d.o.o. Izvorni članak: gnk-asg.hr
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