Find here our tutorial about credit analysis, sometimes ignored, often neglected, especially in small and medium-sized enterprises, which are the most fragile in front of unpaid invoices.Credit analysis is not just an activity of bankers, far from it!
It should be carried out by any entity that makes a loan to another entity to assess the ability of that entity to repay its debt
However, any company that sells by granting a payment term to its customers lends them money. Will they pay? Either you seek to evaluate the probability that the answer to this question is "no" (the risk of unpaid) and to set up the conditions for it to be "yes", or you rely on divine providence, then, to chance.
When we know that a business failure in four is due to outstanding payments (forty a day in France!) And that many others are penalized in their development because of the financial burden of unpaid and late payments, this second option is at least not satisfactory for a corporate executive, or even irresponsible.Read our tutorial about credit analysis.