What can we do to avoid the risk of non-payment of a client?
In all crisis, A risk that increases its probability of occurring in the business environment is Money In customers. This risk, what's more, can bring about a domino effect between companies, causing a spiral of imposses.
Without going further, in the last economic crisis, the impact of delinquency reached an amount equal to the 20% of GDP (year data 2013) and put the 14% of all bank credits (If the risk of default is higher than the 4% It is already a bad fact).
Besides, When managing these defaults, Spanish companies face different obstacles, among which the cultural component stands out. In Spain there is no correct culture of payment. As a sample of this, You just have to take a look at the average collection period of other countries: In the north of our continent is 30 days and in France, from 45. Here in Spain it is from 90 days.
You don't have to be pessimistic, But you have to be prepared at the possibility and, from previous crisis experience, Before some companies that will have to deal with this problem. In Vadillo Advisors They advise to review and adapt customer risk policies and their execution.
What does the law say
Spanish legislation establishes that, If nothing different is agreed, the deadline of payment is 30 calendar days counting from the delivery of the good or service. In any case, The maximum payment period is 60 days, and any clause that indicates more term is null.
In addition, For when a customer is in Mora, namely, When you have not paid within the indicated period, The following penalties are established:
- Mora interest: The Euribor + 8 eight percentage points.
- And for damages 40 euros, unless the collection costs that can prove.
How to prevent this risk
Regarding the company itself, This must carry out a financial economic analysis of customers. And every company should know what weight this asset has about the entire balance, being aware that, higher percentage on the asset, Greater risk of intangible asset.
In this way, Companies should calculate monthly and compare the average collection period with the average payment period. In principle, The first should be less than the second or equal and, In any case, It must be monitored that the collection does not increase.
Also, You have to be aware of the costs that default supposes, And what are they, in principle, The cost of short financing that the company has to finance this asset, plus the cost of recovery efforts.
In Vadillo Advisors we consider that any commercial relationship between companies should be supported by an agreement, accepted by the parties (commercial contract), in which delivery conditions are agreed, means of payment and deadlines. And we recommend that companies carry out:
- A detailed analysis according to the casuistry of the means of payment.
- An audit of your commercial contracts to identify improvement areas.
It is important, in addition, Analyze and investigate customer solvency (The sale ends when charged), both of the new and the recurring, Taking into account the current scenario.
If it is a new customer, It is convenient to agree at least one Prepaid, and use collection means with greater legal strength with executive effects (promissory notes) o confirming. You could also assess discounts for soon payment.
In the same way, It would be interesting to do a credit assurance study, How can credit and bond insurance be, that indicate the level of credit to give.
By last, Let's not forget the importance of the invoice that we issue to the client and that must comply with the billing regulations.
If despite these suggestions, payment is not made, your real -time monitoring is key. The means of recovery of default can be:
- Friendly, which can be a postponement or fractionation of debt.
- Trading, that usually leads to a remove.
- Arbitration or mediation.
- Conciliation act.
- Notarial monitor.
- Judicial claim.
- MONITOR.
- Ordinary Judgment.
In the friendly or negotiation phase, It is interesting to agree on a unilateral debt recognition, Even in the same invoice, signed, And if possible, That the new means of payment is a personally endorsed promissory note. And when the abyne recovery is negotiated, We must include interest in Mora, as well as impacting the expenses of non -payment, so that the Treasury of the companies does not resend.
