What are some early signs to look for to determine that an otherwise good regular customer is becoming a ad debt?
A. There are many signs to look for that foretell a customer is getting into trouble. Obviously, these sings can be misunderstood, but when several appear, it is time to reevaluate your credit policy. The most basic theme is sudden unexpected change. • Starts paying invoices using different checking accounts particularly if from different banks. • Stalls before releasing financial data. • Permits liens to be placed on inventory or receivables. • Requests that goods be sold on consignment. • Customer’s facilities begin to show neglect – they are cutting back on overhead. • Frequent management or purchasing agent changes. Q.
