If a customer with a good payment history starts to pay late, or not pay — you need to pull a current credit report on them.
Additional efforts can be; putting them on “Bankruptcy Watch”, reducing line of credit and / or terms of payment, or requiring pre-payment on future shipments until the account is current once again.
The deterioration of financials can be extremely fast. You debtor may have lost a large account, or even gained one – and does not have the funding to service it. Waiting to pursue collections right away may be the difference in getting paid and never seeing your money.
