Risk Indicators

Paying Customers seldom develop into credit losses without first giving indications of their worsening financial position. Early recognition of these “clues” can often mean the difference between successful recovery and charge-off. Further, by understanding where the individual risk indicators fall within the Progression of Delinquency, it becomes possible to customize your internal collection strategy in response to your customer’s situation…whether that means adjusting your in-house recovery tactics or forwarding the account to your outsourcing partner. How many of these loss indicators do recognize from your own customer list?

  • Customer submits questionable or incomplete credit application
  • Credit terms are broken
  • Promises for payment are broken
  • Customer hides behind voice mail or does not respond to phone messages
  • Partial payments are offered in place of the balance due
  • Customer advises of a “temporary cash-flow” situation
  • Customer requests increased credit limit while already past due
  • Previously unmentioned disputes with product/service surface during in-house collection calls
  • Remittance checks are returned as NSF, Stop Payment, Closed Account, or Refer to Maker
  • Customer refuses to sign a personal or cross-corporate guarantee
  • Notification is received that your customer has re-organized upper management or that an outside consultant has been brought in


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