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Secure your receivables

After evaluating the creditworthiness of your customer, first need is to set up the credit limit and the payment terms in order to ensure that the credit and payment conditions allowed to your customer is consistent with its financial capacities.

The final payment of your invoices is often determined by what has been approved ahead during the trade negotiations.
mitigate risks of unpaid invoices

A good management of trade receivables requires usually anticipation and resolution of potential problems even before delivery and invoicing.

What are the steps to secure the business?


Set a credit limit in line with the financial capacity of your client,
Define the payment term (down payments, payment delay) to achieve your sales without exceeding the credit limit.
 Establish guarantees (from banks, credit insurance ... etc) and / or contractual clauses that reduce or cancel the consequences for your company of an unpaid invoice.

Secure its receivables is linked to several objectives

  • Help to establish business relationships with poor creditworthiness customers without exposing your company to a risk of unpaid,
  • Secure all your receivables accounts in order to avoid any unpleasant surprise,
  • Discount your accounts receivables in order to get cash as soon as invoices are issued.
There are one or more solutions existing for each objective and for each business relationship.
Each client is particular. It is therefore interesting to use a wide range of tools to secure your receivables and do business in all quietness whoever is your client.td>

These solutions can be divided into two categories.
 Choose wisely the way to secure your receivables. Each relationship is special and every credit difficulty has a solution. This will be determined by the level of risk of unpaid invoices, and the context of your business relationship.

Thus, a bank guarantee will be the best solution in some cases when payment in advance or a delegation of payment will be the best solution in others.


Next: set credit limit


Tools download:

Credit limit set up tool based on the business need and financial capacities of your customer.

This tool is a big help for credit analysts to ensure credit limits are coherent with customer financial situation.
Two tools in one with the Credit notation tool linked with the Credit limit set up tool.

This tool is the most powerful to set up a credit limit according to business need and financial situation of your buyer.
Certificate of withdrawal template in french which confirms to the buyer that a check or a promissory note has been lost and won't be cashed in even if it is found.
Dunning letter template in french to send to the buyer after its check came back unpaid.
Certificate of withdrawal template which confirms to the buyer that a check or a promissory note has been lost and won't be cashed in even if it is found.
Easy invoice due date calculation tool.
Fill the invoice date and the tool provides the due dates for each payment term present in the tool.
Tool to calculate the changes in your company's cash depending on the evolution of real payment terms of customers and used with suppliers.
Dunning letter template to send to the buyer after its check came back unpaid.
Down-payment request letter template in french which asks to the buyer the payment of an advance as his credit limit cannot be extended.

It also informs the client that his order will be proceeded once the payment received.
Prepayment request letter template in french to be used when the seller wants to get the full payment of the order before delivery.
Template of advance payment bank guarantee on demand.

This kind of guarantee is often requested by the seller in order to make sure he doesn't lose the advance payment in case of dispute.
Template of advance payment bank guarantee on demand.

This kind of guarantee is often requested by the seller in order to make sure he doesn't lose the advance payment in case of dispute.
Down-payment request letter template which asks to the buyer the payment of an advance as his credit limit cannot be extended.

It also informs the client that his order will be proceeded once the payment received.
Prepayment request letter template to be used when the seller wants to get the full payment of the order before delivery.
Kit including 7 tools to secure its receivable:
  • Bank guarantee on demand,
  • content of a bank guarantee,
  • suspension and termination clauses,
  • property reserve,
  • forfeiture of the term clause,
  • 2 types of parent company guarantees.
Template of Parent company guarantee in french to be used when a seller wants the official commitment of the mother company of its customer to pay the bills.
Template of Parent company guarantee to be used when a seller wants the official commitment of the mother company of its customer to pay the bills.
Parent Company Guarantee on demand with all contractual clauses needed included. A template letter of payment request is included in the tool.
Template of a bank guarantee on demand in french in favor of the seller.

This type of guarantee provides a very good level of security to the seller as far as the issuing bank is reliable.
Template of a bank guarantee on demand in favor of the seller.

This type of guarantee provides a very good level of security to the seller as far as the issuing bank is reliable.
All terms used in a bank guarantee with a definition for each of them.

This tool helps to better understand a bank guarantee.
Forfeiture of the term clause in french mentioning that in case of one installment of a contract unpaid by the buyer all installments will become due.
Template of ownership retention clause in french. This contractual clause mentions that the property of the goods sold remains to the seller until invoices are fully paid by the buyer.
Suspension and termination clauses template to be included in contracts in order to be able to stop to deliver if the buyer doesn't pay the bills.
Forfeiture of the term clause mentioning that in case of one installment of a contract unpaid by the buyer all installments will become due.
Template of ownership retention clause. This contractual clause mentions that the property of the goods sold remains to the seller until invoices are fully paid by the buyer.
Suspension and termination clauses template to be included in contracts in order to be able to stop to deliver if the buyer doesn't pay the bills.


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