John Teixeira

As a point of reference, good payment behavior is exemplified by payments made on a consistent basis, that are paid in full for billed work, and are paid on time according to term dates. If your customer's payment behavior doesn't include these characteristics, you should investigate why.

Credit bureaus such as Dun & Bradstreet, Experian, and Equifax can present you with not only the credit reports they produce from the data they collect, but also provide additional risk insights. These companies also produce a variety of credit metrics based on their reports.

Building a framework to evaluate customer credit is essential to protecting your business from financial risks. Learn how to use different methods to assess customer credit, what key metrics to track, and invoice behaviors that may indicate financial distress.