How to minimise risk in your portfolio & strengthen business resilience

The global economic landscape is more challenging than ever, with persistently high inflation and interest rates, set against a backdrop of geopolitical upheaval. If you want to minimise business risk, a good place to start is your customers’ creditworthiness. Here are five tips on how you can protect yourself against payment defaults and strengthen business resilience. 

A manufacturer began producing goods for a client three years ago. The manufacturer checked the client's creditworthiness at the start of the relationship to ensure they would be able to pay for the goods, but hasn't conducted any credit checks on the client since. “We didn’t see any need for action, given we checked the customer’s credit rating at the start of our relationship,” explains the company’s credit manager. But that is far from ideal, as Daniel Schneider, Senior Business Consultant at Dun & Bradstreet, knows.“Many companies focus on checking new customers, which is important. But it is at least as important, especially in uncertain economic times, that you also check the creditworthiness of your existing customers at regular intervals. Today’s information is already out-of-date tomorrow,” says Schneider.