Pre-Credit Risk Assessment

When you extend trade credit, you become a lender. Every Net 30 invoice is an unsecured loan to your customer—and unlike banks, you probably didn't run a credit check first. This assessment helps you evaluate new and existing customers before extending or increasing credit terms. You'll answer ten questions about verification status, payment history signals, financial stability, and your own capacity to finance the receivable. The result: a risk score, recommended credit limit, suggested terms, and red flags to watch. Because the best collection strategy is not needing one.