Overdue payments are nothing new. Several high-profile bankruptcies have been making the newsover the last few years—with seemingly more every day. And the kicker? Not even growing companies are exempt. So, how can you ensure that you are insured for your payment when the due date comes? We have some tips to help.
This may seem obvious and basic, but it really needs to be done. You need to become very predictable. Buyers can’t pay what they haven’t been billed; you need to develop your rhythm so they know what to expect. This helps both your buyers and your internal staff.
You may have toyed once or twice with the idea that rules are meant to be broken. They are not. To ensure you get your payment on time, you need to establish a rule early on that payment terms must be followed. Payment in 30 days means 30 days. You want to be friendly but firm. Your company is a priority for you and you want your buyers to feel the exact same way. Establish your expectations early and then maintain them throughout the entire relationship.
We have often heard, “An educated customer is your best customer.” But ask yourself: What about my staff? Are you really taking the time to educate them?
Train your team why the rhythm is important, and then how to handle themselves and your invoices should someone decide not to follow the rules. Habits are like reflexes, they happen automatically. Training your team how to handle these interactions with your buyers helps them hold the line when it comes to how they work with buyers on a day-to-day basis.
Think of it this way: If your competitor has established a strong pattern and rhythm for accounts receivable and business debt collection and you have not, which company will get paid first?
Establish guidelines for their actions; help them understand what needs to be done to protect your company’s most valuable assets: Your accounts receivables.
Everyone knows that eventually, a problem will arise, so when non-payment inevitably happens it shouldn’t be a surprise to anyone – not you or anyone on your team. Your training should also include:
Having these practices in place should ensure you are insured for non-payment—both in preparation and in actuality.
Allianz Trade's credit insurance in Singapore (also called accounts receivable insurance) helps protect your A/R assets in the case of non-payment.
Allianz Trade is the worldwide leader of credit insurer in trade credit insurance and offers expert solutions such as accounts receivable insurance, business debt collection, bad debt, trade credit, trade credit management, cash flow management, xol, debtor insurance, collect overdue payments, late payments and unpaid invoices. Our mission is to help customers globally to avoid trade risk, trade wisely and develop their business safely.
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