6 steps to assess your customer's insolvency risks

Insolvencies often occur when an important business partner folds. Learn how to assess your customers to protect your business.











 Woman at a screen | Atradius


Various businesses find it difficult to weather losses caused by a customer’s insolvency and can quickly end up in dire straits, with liquidity constraints threatening their very existence.
However, going into insolvency doesn’t occur overnight.
Therefore, a timely identification of vital factors is imperative to protect your business

Download the full checklist to assess your customer's insolvency risks

Identify and monitoring customers

The downloadable checklist below will help you identify the most important indicators you should monitor in a customer. The credit risk goes up with the number of indicators that are fulfilled in the checklist. This will thus enable you to adapt your business policy accordingly by briefly evaluating the following factors:

  •   Payment behavior
  •   Senior management
  •   Financing
  •   Accounting
  •   Procurement
  •   Manufacturing
  •   Sales performance




Trading Briefs Assessing Paymen behaviour


Limitations of insolvency risk-monitoring

A 100% accurate prognosis is hardly possible. It is not uncommon for companies to be successful despite showing negative indicators. On the other hand, it is not uncommon for businesses that in the past did not show unfavorable signs to file for insolvency. However, practical experience shows that the chance for a future insolvency will grow with the number of negative characteristics and indicators.

Download the full insolvency checklist

Related content

Amicable Debt Collections


We help you cultivate and retain positive working relationships with your customers by providing non-contentious solutions through our amicable debt collection services.

Insolvency Services


As a global debt collection firm with a worldwide network of lawyers and experienced professionals we are well placed to make claims on your behalf against bankrupt debtors wherever they are located.

Case study


The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.