10 Signs Your Customer Is Going Under

Hi Readers,

I have often used this insight to train my sales reps to understand their business eco-system and to take corrective measures before its too late for them and the business as a whole.

Time to share my insights with you all.

  1. Changing payment patterns. If the customer asks to delay payments from 30 to 45 or 60 days, be wary.
  2. Shifty buying habits. Customers may be paying on time, but are they still buying?
  3. Constant nitpicking. Normally quiet customers suddenly come in with a flock of demands.
  4. Watch cash flow. If you have access to your customers financial statements, watch the cash.
  5. Large accruals. Distressed firms tend to have more on their balance sheets.
  6. Tight lips. A normally-open firm suddenly clams up.
  7. High Day Sales Outstanding. Watch if your customer suddenly has trouble collecting his receivables.
  8. Managerial shuffling. Watch out if you see C-Suite musical chairs.
  9. Persistent rumors. Too often they are true.
  10. Tax liens. If a customer starts racking up tax liens, it’s a clear sign he’s going under

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