Why payment behaviour matters more than annual figures
Filed annual accounts are often twelve to eighteen months old. Payment behaviour is from last week. Short answer: payment behaviour is the most up-to-date indicator of credit risk you have — and you already have an initial picture in your own accounts receivable records.
The five patterns that matter
- Increasing time to pay. A rise from 32 to 38 to 47 days in three months matters more than the absolute figure.
- From full payments to part payments. Customers who start splitting payments are allocating scarce liquidity.
- Payment only after a demand. Consistently waiting for the second reminder is a choice, not a mistake.
- Disputes over invoices that were never questioned before. Often a way to buy time.
- Larger orders with longer payment terms. Sometimes growth, sometimes a supplier that has just stopped supplying.
How to carry out a simple analysis
Export each customer's invoice dates, due dates and payment dates over 12 months and calculate:
- average number of days overdue per month
- percentage of invoices paid after the due date
- highest outstanding balance during the period
Compare this with the agreed payment terms. Three consecutive months of deterioration is a reason to freeze the limit.
Payment experiences from other suppliers
You only see how a customer pays you. Credit information adds payment experiences from other suppliers and insolvency notices, so you can also see whether the problem extends beyond your relationship.
What should you do when you spot a warning sign?
- Call — do not email — your customer's accounts receivable department
- Freeze the limit at the current balance
- Agree a payment plan with specific dates and put it in writing
- Supply new orders against advance payment
- Do not delay debt collection: every week you wait reduces your recovery options
Frequently asked question
May I share payment experiences? Payment experiences relating to legal entities may be shared subject to conditions. Where a natural person or sole trader is involved, GDPR (AVG) rules apply and a valid lawful basis is required.
From explanation to a company file
- Check a company's creditworthiness
Combine registration details, annual accounts, payment history and insolvency information before doing business.
- Credit report: example and request
View a clearly fictional file, its sources and limitations, and request credit information.
Sources and scope
Examples and policy choices in this article are illustrative, not a current quotation, fixed standard or financial or legal advice. The editorial revision date relates to the summary, structure and source references; it is not a reference date for the underlying data.
| Primary source | What is it used for? |
|---|---|
| KVK (Dutch Chamber of Commerce) — checking business partners | Company identification and checks on business partners. |
| De Rechtspraak — Central Insolvency Register | Official insolvency notices and available public reports; check the relevant entity and the date of the court ruling. |
Source links support the topic mentioned, but do not automatically substantiate all percentages, time frames or examples in this article. Check current terms and rules with the responsible authority.
Request credit information with sources and reference dates
