Cash flow management: What to do when your customer doesn’t pay

How to proactively increase your recovery odds, while keeping your small business cash flow  protected.

The due date comes...  and goes and you wonder ‘will your customer pay?’ How do you know if a good customer is starting to struggle? The threat is real.

What steps should you take to maximise the chances of getting your money back?

  • Address non-payment the minute that an invoice becomes overdue 
  • Sending notices of late invoices will highlight the issue. It also provides a valuable paper trail in case you need to escalate the matter later
  • Are you tracking all your activities with key dates and communications?

You could:

  • Stop supply
  • Escalate the issue within their company
  • Involve a third party (lawyer, collection agency etc.)
  • Take them to court
  • Do you have the right people in place on your team?
  • Who’s doing the chasing? Have you defined your escalation process?
  • Are you talking to the right person on their side? Who is in charge? Who has the power to get things moving?
  • Are you clear on the timeline, past, present, and future?
  • Is it documented?
  • Are you consulting with legal and collections?
  • Is it time to act?
  • Do you have a trace with your signed documentation to date?
  • Is it in order and without gaps?
  • To collect on a debt, you will need to have all of the relevant supporting documentation. Every time you work with a customer create a contract that specifies what you are providing and an agreed payment schedule.
  • How does the unpaid debt impact your cash flow?
  • Do you expect enough cash flow?

Because the future isn’t always as we expect, we predict trade and credit risks today, to protect cash flow tomorrow.

As you trade through the year, you make decisions that call for expert insight into your markets and the economic cycle, backed by insurance and trade finance solutions that bring greater security to your plans.

This is where we can help.


Allianz Trade is the global leader in trade credit insurance and a recognized specialist in the areas of surety, collections, structured trade credit and political risk. When the unexpected arrives, our AA credit rating means we have the resources, backed by Allianz to provide compensation to maintain your business.

For more information about trade credit insurance, visit:

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