Knowledge is key for preventing bad debts
The best way of dealing with bad debt is to avoid it altogether. You therefore need a combination of market knowledge, credit intelligence and trading advice to ensure you always see the bigger picture about your buyers.
This section lists key information which we hope will help you to protect yourself from debt. We are always happy to discuss your questions personally, simply use the button in the right-hand column to get in touch with us.
Know who you are dealing with BEFORE you trade
Don't rely on hope or instinct alone. Get status reports on any customer you are planning to deal with before you supply your goods or services. Even better, pay them a visit.
Have you considered insuring yourself against bad debt? Euler Hermes offers comprehensive credit insurance, which includes credit intelligence and other credit management services.
Credit Intelligence is a Euler Hermes credit information service, enabled by an exceptional network of information sources, drawing on first-hand, up-to-date knowledge of 40 million companies around the world, 24 hours a day, 7 days a week. This credit limit decision service also draws on our specialist trade underwriters and country analysts.
Ensure your T&C's allow for collection/recovery
When you trade with your customers, the trade will be bound to the rules laid out in your Terms & Conditions. Therefore they form the first line of defence in any payment dispute. It is enssential to have them in writing, ideally written by a contract lawyer. You should also have them reviewed at regular intervals, to ensure you are prepared for any potential conflicts.
You can even include a contractual right into your T&C's which allows you to recover OUR cost from your debtors.
See debt hints and tips
We have put together a few key points and tips to help you avoid the most common causes of debts and late payments. There is also a section on trading internationally.
Should you, despite all the tips, have encountered a bad debt don't give up. Instead, send us the details of the debt using our convenient web form and we will handle the issue for you, professionally and hassle-free.
Euler Hermes Group
