The prevention of non-payment in companies is essential to avoid financial losses that could jeopardise the operational continuity of the business. In the current economic context, characterised by heightened global uncertainty and a month-on-month increase in the number of companies declaring insolvency or entering creditor proceedings, it is imperative to strengthen commercial operations.
The growing liquidity difficulties faced by many companies are eroding their ability to meet payment obligations, which not only affects their own financial stability but also that of their suppliers, creating a chain effect that poses a significant risk to the business fabric as a whole.
Late payment endangers the survival of the company
Non-payment and late payment are among the main challenges faced by the majority of companies. For this reason, organisations need to implement strategies that enable them to manage non-payment effectively and in a timely manner. Although accounts receivable may represent assets for organisations, the issue arises when transactions are carried out with entities that will be unable to meet their financial commitments.
To avoid this, one of the best options is to rely on sound advice such as that provided by a Credit Manager. This professional is capable of designing an effective business plan and reducing corporate non-payment, as well as properly managing credit risk, thereby increasing transaction security.
There is currently a wide range of literature on credit risk management, enabling executives, managers and leaders in general to stay informed of the main strategies for anticipating financially complex scenarios, increasing recovery rates and, consequently, improving business profitability.
Tips for effectively managing non-payment
As the saying goes, “prevention is better than cure”. In this case, the prevention of non-payment is essential to maintain financial stability in any company. In this regard, to manage accounts receivable effectively, you can rely on the following strategies.
1. Research your potential customers
In addition to generating sales, one of the keys to commercial success is the proper management of credit transactions in order to avoid non-payment and keep credit risk under control.
Therefore, before signing any contract with a new customer, it is essential to ensure that they are not listed in any debtor registers or have outstanding debts with the Public Administration. In the Atlax database, you can also review the payment behaviour of the new customer, both positive and negative, updated on a daily basis.
2. Implement preventive collection strategies
One of the most effective ways to reduce the likelihood of non-payment is to implement preventive collection actions, either by contacting customers in advance to remind them of an outstanding debt or by enquiring from the outset about the status of invoices in order to identify potential commercial disputes. This allows customers to organise their finances, thereby increasing the likelihood of recovering the outstanding amount.
3. Offer payment alternatives
One of the best ways to prevent debts from accruing further interest and becoming more difficult to recover is to explore payment options. By offering facilities such as extended deadlines, instalment payments or the removal of interest, it is possible to increase the chances of recovering accounts receivable.
4. Leverage technology to anticipate risk scenarios
There are currently solutions that, through Artificial Intelligence (AI) and Machine Learning, enable the management of non-payment before it occurs. This is achieved through the analysis of the payment behaviour of potential customers, making it possible to identify factors that may pose a risk to your operations.
For this reason, one of the most effective ways to prevent corporate non-payment and control late payment is to rely on technological solutions that allow such scenarios to be anticipated. By optimising credit risk, you can enhance the security of your operations and reduce the likelihood of debts that may complicate the company’s financial position.
