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Early
Warning Signs of Bad Debts!
The following are some of the more common early
warning signs:
· Cannot
contact customer by telephone
· Customer
will not return messages
· Rumours
in the industry, from customers staff, your
sales staff, other creditors
· A
change of delivery/invoice address
· A
change in order patterns
· A
change in payment pattern
· A
change of directors or corporate secretary
· Customers
premises in disarray - stock levels low
· Customers
product constantly changing - out of normal
goods and services supplied
· Signatories
away for longer than 2 weeks
· A
new signatory - especially if new signatory not
known
· Customer
pays cash on delivery, when they were previously
charging
Spotting the early warning signs can assist you
to better control credit. You can make immediate
contact and effect prompt follow up action as
you receive any indication that there are
problems brewing.
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