60 days overdue on your customer’s invoices.

“Don’t worry. They’ll pay.”

This may be the most expensive phrase in a supplier’s credit policy.

When extending trade credit, the challenge is not simply delayed payment. It is how you respond once payment delays become a reality—particularly in markets where extended payment terms are part of everyday commercial practice.

Before continuing deliveries, you need clear answers:

Why is the customer delaying payment?

→ Is the customer experiencing a persistent liquidity problem, or taking advantage of its stronger negotiating position?

→ Is there a commercial dispute concerning the goods? Has the customer formally communicated an issue?

→ Is the customer also delaying payments to other suppliers?

→ How much has our total exposure increased as a result of the extended payment period?

→ What does our internal Credit Policy require? Has the issue been properly escalated and addressed internally?

→ If the receivables are insured, what is the insurer’s position?

The overdue is a fact.

The decision you make afterwards is where genuine Credit Risk Management begins.

In practice, effective credit risk management means identifying warning signs early, assessing your exposure and making decisions based on reliable information.

It is not simply about asking:

“Will the customer pay us?”

It is also about being able to answer:

“How much exposure are we willing to accept until the customer pays us?”

That is the difference between simply waiting for payment and actively managing credit risk.

At VEKRIA Advisors, we help businesses strengthen their credit risk management through Credit Risk Advisory, Trade Credit Insurance and Surety solutions.