Checklist of Early Warning Signals of Potential Distressed Debtor
Sales reps are on the front line of your business, but are not usually educated about what might constitute a warning sign of financial troubles. This list was compiled to help sales reps know what to look for and is a great way to get additional "eyes and ears" keeping a lookout for signs of trouble in your customer base.
| Early Warning Signals of Potential Distressed Debtor | ||
| For Account Managers | ||
| Yes | No | Warning Sign |
| Decrease in inventories | ||
| Major expansion of business | ||
| Loss of a major customer | ||
| Excessive downtime for lack of orders | ||
| Personnel layoffs | ||
| Key employee turnover | ||
| Illness or death of owner or key employee | ||
| General disorganization | ||
| Loss of equipment | ||
| Rumors that the business is in trouble | ||
| Business is for sale or is sold | ||
| Owner with domestic problems | ||
| Competitor complaints of low pricing | ||
| Increase in orders | ||
| Requests extended terms | ||
| Slowing in payments | ||
Increased excuses for non payment:
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