When your business is involved in B2B payments, you need to be well informed about not only current credit trends but also credit checks.
It’s helpful to know some basics regarding debt collection and business credit reports. Knowing these trends and what to expect with current realities will help you make smart decisions.
Here are five things you should be aware of when dealing with B2B payment practices (report and statistics from Atradius Payment Practices Barometer)
1) Late Payments Are Extremely Common
In the Americas, 92.6% of respondents reported late payments from their domestic B2B customers. It’s important to know this so you can prepare and plan ahead; not only for late payments but how you are going to collect them.
2) Most Late Payments Are Due to Insufficient Funds
This means it’s important to know a bit of your customer’s credit background before getting too involved with them. You want to be able to count on their payment and not get yourself in the red because they don’t have the funds. Having a business credit check done is a smart idea.
3) More Businesses Are Checking Their Customer’s Credit
According to the Atradius report, on average, 31.9% of respondents in the Americas reported their intention to increase checks on buyers’ creditworthiness and 28.2% to increase monitoring of buyers’ credit risk. This goes with the above point of checking beforehand on your buyer’s credit. Doing a credit check for business can keep you away from some businesses that may not be the best to work with.
4) Bankruptcy Can Cause Uncollectable Debt
Sometimes if a company goes bankrupt, it really is out of your hands. However, with debt age and collection attempts, you can do something about it. Whether it is you trying to collect or a collection agency, it’s worth it to make an effort to collect before the debt gets too old.
5) Sometimes You Need to Outsource Your Efforts
By working with a credit data company, you can have valuable information that you otherwise may not be able to find. When you know the credit of the companies you work with, you’ll be more inclined to work with businesses that can pay. You can also stay away from riskier companies.
Credit.net can help you make these informed credit decisions. With in-depth coverage on over 15.5 million companies and detailed, accurate reports, you’ll have all the information you need. You can see all the valuable data on other businesses to make the best decisions based on fact and data. With detailed reports from Credit.net, you’ll have the necessary data to evaluate the financial stability of the businesses you already work with as well as prospective ones.
With the high risk of unpaid B2B payments, you want to make the best, most well-informed decisions you can. Credit.net can help you do this. Please contact us for more information.