Secure your receivables

It is therefore necessary to secure its receivables either by demonstrating the financial and behavioral quality of its buyers and / or by providing security solutions.
These can either be obtained through commercial negotiation (for example obtaining a deposit or a bank guarantee) or from third parties.
When securing sales?
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.
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?
There are many different types of means to ensure the subsequent payment of receivable.The first step is to define what outstanding amount is acceptable for a given customer and to optimize the payment conditions:
- 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,
- Avoid late payments,
- Discount your accounts receivables in order to get cash as soon as invoices are issued.

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.
- The specific ones: those that you develop for a client or a particular business.
- Generalist ones: those involving some or all of your clients.

Next step : Set up the credit limit →
Comment this page
Tools to download
Online tools
Not yet registered?
Sign up now to enjoy the download and unlimited use of all tools of Credit tools.