Solutions to prevent credit frauds.

1
HOW TO PREVENT
CREDIT FRAUD
Credit frauds can impact a business adversely in
various manners. Such manners can include lower
cash flow liquidity, supply management shocks and
low availability of capital for investments.
There are many simple steps businesses can take
to protect their business from fraudulent
practices. Such steps can ensure more
transparency, help build better relations with
customers and gain early payments. Some of these
steps include notifying customers, resolving
claims quickly, purchasing customer insurance or
in extreme cases, handing over invoices to debt
collectors. The following is a list of all such
solutions.
http//www.coface.se/
2
CREDIT LIMIT
Businesses can review customer history
individually to set appropriate credit limits.
Some customers may have had a troublesome past
with the business. Such customers can be treated
with more care and extra insurance can be
purchased to protect business from such
customers. Similarly, low credit could be
assigned to new customers until they can instill
a certain level of confidence.
3
TERMS AND CONDITIONS
Businesses should draw out clear terms and
conditions for their customers. Customers can be
notified about these terms and conditions in a
formal letter or through various convenient
online channels. It is important for customers to
understand the duration, amount of credit and the
legal consequences.
4
CUSTOMER RELATIONSHIPS
It would not be unreasonable to assume that every
business can have a low point at some point of
time. In order to understand suppliers and
customers and their situation thoroughly, it is
for businesses to have good relationships with
their customers. Such relationship can avoid
unnecessary legal hassles and also extend a
helping hand to build a long term relationship.
http//www.coface.se/Vaart-erbjudande/Kreditfoersa
ekring/Single-Risk