Your company gets an order. To make or deliver something. You work on that and deliver great work. The customer is satisfied. The invoice goes out the door. At that moment, that customer is a debtor. Every customer who owes you money and has an outstanding invoice is a debtor. Has a customer paid? Then he is no longer a debtor.
DEFINITION OF DEBTORS: CUSTOMERS TO WHOM YOU SEND INVOICES AND FROM WHOM YOU HAVE NOT RECEIVED PAYMENT YET.
Even as successful as you are, unpaid invoices can ruin your business. One in five bankruptcies of SMEs is due to non-payment. Fortunately, you can take measures to prevent this. For example, by checking the creditworthiness of your customers.
Do our free customer check now and get a non-payment risk assessment from 3 customers or prospects.
If you have many debtors, then you are owed money by many customers. You must be careful with that. You have put time and money into all those jobs you have done. It is important for the financial health of your business that you get paid on time for that. You must strictly monitor that.
With a good debtor management, you keep good track of outstanding invoices. Has a payment term expired and the money has not arrived? Then send a reminder immediately. It never hurts to call the customer. Is there any uncertainty about the invoice? Perhaps the invoice has been lost? But the most important thing is not to lose the thread/ By doing so, you will spur the customer into action. Looking for tips to improve your debtor management?? We wrote an extensive white paper about this: "Prevent bankruptcy through non-payment".
What once seemed like a great assignment can lead to sleepless nights. Despite reminders, your debtor still doesn't pay. You doubt you'll ever see the money again. For example, because the customer has gotten into financial trouble. Or because you hear sounds that the customer cannot be trusted.
At worst, you must accept the unpaid note as a loss. Hopefully, the amount involved is not too large. Even if you are so successful in business, unpaid invoices can ruin your business.
You can insure your debtors with a trade credit insurance. With this, you avoid losses due to non-payment. You can then count on the money you desperately need to keep your business running. With a trade credit insurance you ensure guaranteed payment of your outstanding invoices.
From small SMEs to large corporations, we have the trade credit insurance that fits your business. Do you want to know more about our trade credit insurance? We would be happy to tell you more.
When you buy something in the store as a consumer, you usually pay for it immediately. You almost don't see that in business. Most of the time people buy on account. You buy something and then you are sent an invoice. The person you have to pay is called creditor. Any supplier who provided you with goods or services and to whom you owe money is called a creditor.
DEFINITION CREDITORS: YOUR SUPPLIERS (INDIVIDUALS OR COMPANIES) FROM WHOM YOU RECEIVE INVOICES AND MUST PAY THEM
It is important that you check invoices that come to you carefully. Are the details correct? Did you indeed receive the goods or services listed? Is the amount correct? What is happening more and more often is that businesses are receiving fake invoices. Invoices for goods or services that were never requested by you and never delivered. Consider, for example, invoices for a subscription or membership.
False invoices are a recurring problem. They look like they were sent by reputable companies, but in reality the invoice appears to be counterfeit. They are almost indistinguishable from the real bills. Only if you pay very close attention can you see that something is wrong, for example with the description or bank account number.
