Due to the generally low commercial creditworthiness, many business risks stem from customers' inability to remit payments in a timely manner after receiving goods. The problem of unpaid goods and receivables has become a major obstacle to normal business operations. Based on my past experiences, I propose the following 12 countermeasures for your reference.

1. For new customers or old customers whose creditworthiness is uncertain, the transaction amount should not be too large, regardless of whether it is consignment sales or credit sales. It is better to make more trips, settle accounts more frequently, and spend more time persuading customers than to take the easy way out and entrust a large amount of goods to them for consignment sales or credit sales. Remember that the larger the debt, the more difficult it is to recover, which is very important. Many sales personnel have this experience: Some new customers will ask for a large amount of goods at the outset, without asking about quality, price, or any additional conditions, readily agreeing to all the seller's requirements. Such customers pose the greatest risk.

2. The risk of unpaid goods and receivables is sometimes caused by sales personnel. Some sales personnel, fearing that products will not be sold (especially products in a weak market position), use consignment sales or credit sales without assessing the customer's creditworthiness, resulting in significant losses for the company. To avoid this, a "buy-and-sell" system can be implemented between the company and sales personnel, where the company collects payment from sales personnel based on 100% of the receivables, and the sales personnel are responsible for collecting payments from customers. This method assigns the risk of unpaid goods and receivables to the sales personnel, prompting them to think twice before supplying goods to risky customers. In case of non-recoverable goods or receivables, they will do everything possible to pursue recovery, otherwise, their economic interests will be directly harmed. This is the most effective way to motivate sales personnel's sense of responsibility and work enthusiasm, much more effective and simpler than urging and supervising by superiors.

3. Some sales personnel show a degree of timidity in debt collection. A crucial aspect is having firm conviction. When collecting receivables, a confident and decisive individual often achieves unexpected success, recovering debts that seemed hopeless. Conversely, one may be led by the debtor, potentially losing receivables that could have been recovered. Therefore, the mental state of the debt collector is crucial. Some debt collectors believe that aggressive collection will upset customers and affect future transactions. If you think this way, you will not only never collect the receivables but also lose future business. The more a customer owes, the more difficult it is to pay, and the more likely they are to switch to other suppliers. Therefore, aggressive collection is the best strategy.

4. To prevent customers from delaying payments, clear transaction terms must be stipulated at the time of the transaction, especially regarding payment dates, which should be inflexible. For example, some consignment contracts or receipts state "payment after sale." As long as the customer has unsold goods, they can legitimately refuse to pay. Other contracts or receipts state "payment after October," which can lead to disputes later. Furthermore, transaction terms cannot be verbally agreed upon; they must be in writing (contracts, agreements, receipts, etc.) and stamped with the customer's company contract seal. Some customers only stamp the private seal of the handler on the contract or receipt. Months or half a year later, when settling accounts, the other party may claim that the person has left and their signature does not represent the company; some may even deny knowing the person. If the company's contract seal is used, the other party cannot evade or deny responsibility, regardless of whether the handler is still employed.

5. After a transaction is concluded, it is essential to regularly monitor the customer's business operations and promptly detect any unusual activities. If a customer exhibits unusual changes, there are usually some precursory signs, such as a sudden decrease in purchases, disposal of non-滞销 inventory, delayed payments, a sudden increase in employee resignations, the owner engaging in unrelated businesses, or excessive indulgence in entertainment. External environmental changes should also be promptly detected, such as "demolition" written in red paint on nearby buildings, indicating that the customer's store will be closed and demolished soon. If such situations are detected, settle accounts immediately to prevent the customer from disappearing.

6. For customers who are not prompt in paying, it is generally impossible to collect payments simply by visiting them before the contractually stipulated payment date. It is necessary to urge payment beforehand. When urging payment beforehand, confirm the amount owed and inform the customer that you will arrive on the next payment date to collect the payment. This is much more effective than urging payment on the payment date itself. If there are many customers and distances are far, you can urge payment by phone beforehand, confirm the amount owed, and inform the customer of the exact time of your visit. Alternatively, send the payment reminder by mail and ask the customer to sign and return it.

7. On the contractually stipulated payment date, arrive early. This is a key to successful collection. Otherwise, the customer may claim that you were late, and they had to attend to other matters, leaving you speechless. When visiting to collect payment, do not leave if other guests are present. Clearly state your purpose and wait patiently. This is a very effective collection method. Customers do not want their guests to see a creditor, as it may ruin other business or cause embarrassment in front of friends and relatives. In such cases, if the amount owed is not large, they will usually pay quickly to get rid of you. While waiting, you can listen to the customer's conversations with their guests and observe the internal situation. You may also have the opportunity to learn about the customer's current situation from their employees, which may yield valuable information.

8. For customers with poor payment records, do not engage in lengthy pleasantries upon meeting. Directly state your purpose of collecting payment. If the debt collector is hesitant and shy, the customer will gain the upper hand and have time to prepare how to deal with you. Generally, customers who owe money know it is wrong. They feel guilty about the debt while finding various reasons to delay payment. If they consider delaying payment as a matter of course, it is best to avoid further transactions with them after settling this payment.