How to Avoid Defaults When Selling on Credit

Selling on credit can be an effective strategy to increase sales and attract more customers, but it also involves certain risks, such as non-payment. To minimize these risks and ensure your business receives the corresponding payment, Del Risco Report, an agency specializing in credit reports, presents some key strategies.

Know Your Customer

Before extending credit to any customer, it is essential to understand their financial and credit behavior history. For this, you can hire the services of Del Risco Reports, which provides detailed credit reports. We offer detailed reports about the company, payment history, financial solvency, and other important characteristics.

With this information, you can evaluate whether the customer is reliable and capable of fulfilling their payment obligations.

Draft a Good Contract

This document is the foundation of any credit transaction. It is vital that all terms and conditions are clearly specified. Make sure to include details such as payment terms, late fees, and the consequences of non-payment. To ensure the contract is solid and complies with all legal regulations, it is advisable to seek the guidance of a specialized lawyer. A well-crafted contract protects both parties and significantly reduces the risk of non-payment.

Incoterms

If your business involves international trade, correctly defining the Incoterms (International Commercial Terms) is necessary. Incoterms determine the responsibilities of the buyer and seller in aspects such as transportation, insurance, and customs duties.

By clearly defining these terms, misunderstandings are avoided, and both parties understand their obligations. For this, it is appropriate to have knowledge of the INCOTERMS used in your sector. It is advisable to consult with an international trade expert who can guide you in choosing the most suitable Incoterms for your business.

Companies to Know in Del Risco Reports

Here is a list of some companies you can investigate through Del Risco Reports. This data will help you make informed decisions about whom to offer credit to:

1. Unión Comercial de Paraguay S.A

2. Lafcosa

3. Startex S.A

4. Cetco S.A

5. Metallik Limitada Costa Rica

6. Lux Distribution Chile SPA

7. Central America Spinning Works El Salvador

8. Hoosier Manufacturing, Compañía Limitada

9. Comercializadora México Americana

Implementing these strategies will help you reduce the risks associated with selling on credit, thus ensuring the financial health of your company. Contact us if you need more information about our credit reports... we are here to help you.