It is important that when you start to trade with a new customer, the correct credit limit and credit terms are agreed. These must be set with a view that they are obviously realistic for both parties, therefore reducing or eliminating the chances of future problems.
Bad debt has plagued many industries for years. Much of this could have been avoided if more care was taken at the outset to establish realistic credit limits/terms, and pressure for payment was applied at the right time and in the correct manner.
FMCM will, as part of your membership, advise on credit limits and credit terms in order to continually reduce your exposure to credit related risk.