In the current economic context, some businesses are facing an increasingly significant risk, namely the insolvency of a key client.
What Can You Do to Protect Business Against a Client’s Potential Insolvency?
Review the Company’s Internal Policies and Procedures
The new year can be a good opportunity to reassess your credit management practices and mitigate risks associated with a potential insolvency situation.
Here are examples of good credit management practices for SMEs:
- Effectively manage accounts receivable by assessing clients’ creditworthiness before granting credit, setting clear and appropriate limits for each client, and closely monitoring overdue accounts.
- Implement a clear credit policy that defines credit approval criteria and communicate this policy to both clients and your teams.
