standard accounts receivable terms in food industry

If the score of your current provider is based on one or two companies as is sometimes the case with some generic credit bureaus, you are at risk without even knowing it. What you want is not a Polaroid of risk as of today but a film based on several months of history to be able to identify trends and better anticipate the level of real risk.ģ) MAKE SURE THE CREDIT SCORE OBTAINED IS RELIABLE You are asking for a banking report today that will be favorable but he withdraws it tomorrow! Or, that this customer has payment habits showing acceptable delays but in fact they have shown signs of deterioration for several months.

Imagine a customer who deposited a large amount in his bank account yesterday. The picture of a customer's situation today as provided by the generic credit bureaus, simply gives you a rough idea of its ability to pay. Your best protection against potential bad debts is to be alerted as soon as changes in payment patterns occur to adjust your behavior with that customer before being struck with a NSF check or a bankruptcy. The cash flow of a company fluctuates constantly. Here are 4 tips to further reduce your credit risk.įrom the day of the opening of a new account, it is strongly recommended to monitor it on a permanent basis. 4, 7 and 14 days terms, high risks to deal with restaurants and small retailers, low margins and more frequent frauds can significantly affect your profitability. In its 25 years of existence, the Food Industry Credit Bureau (TFICB) has identified best practices adapted to the particularities of our industry.

Standard accounts receivable terms in food industry