How to Reduce, Insure, or Sell Debt

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The creditor can not only control the amount of receivables using financial statements, but also take a number of preventive measures to ensure that they do not exceed the permissible amount.

Reduction. You can reduce the accounts receivable on the balance sheet only by receiving money, services or goods from debtors. To do this, the creditor must monitor the deadlines, remind about payments or, if necessary, even file a lawsuit.

Insurance. The creditor can additionally protect itself from possible south africa telegram data losses not only with the help of sanctions in the contract with the counterparty, but also with the help of insurance. To do this, the company must contact an insurance company and provide a list of its debtors and data on transactions with them, where the amounts of payments, terms, etc. are indicated.

Insurers will check all debtors themselves, assess the risk and offer a policy and the amount of possible compensation for each transaction. The conditions for receiving payments may vary. For example, an insurance company may compensate a creditor for damages if the debtor simply missed a payment d