How do you identify high-risk customers?

1 May 2026

67% of SMEs lose annual revenue due to late payments, averaging around €20,000 per entrepreneur. This is according to the MKB Barometer 2026 by Exact. Furthermore, according to CBS figures, Dutch SMEs are waiting on approximately €55 billion in outstanding invoices. This poses a serious risk to your cash flow, your growth plans, and ultimately, the health of your business.

The good news is that most non-payers show signals before the first invoice is even sent. If you know what to look for, you can avoid most problems before they arise. In this article, you will read about 7 concrete red flags to identify risky clients at an early stage.

1. Check creditworthiness before delivery

The first and most important step is to know who you are doing business with. By checking the creditworthiness of a potential client beforehand, many problems can be avoided. For instance, you can request detailed reports on the financial health of companies via incasso.nl.

By analyzing these reports, you get a good picture of a client's payment history and financial stability. Of course, you can always contact us if you want information about the creditworthiness of your client.

When performing a credit check, pay special attention to:

Payment history: How has the client paid in the past? Are there reports of outstanding invoices or payment arrears?
Debt burden: How much outstanding debt does the client have at the moment, and how does that relate to their revenue?
Credit score: A low credit score can be an indication of financial trouble.

Are you in doubt about the creditworthiness of a specific client? Please feel free to contact us, as we are happy to help you with a check.

2. Research history and reputation

In addition to financial figures, a company's general reputation often tells an important story. A history of bankruptcies, legal conflicts, or structurally negative reviews is a serious signal.

Consult these sources for this:

Chamber of Commerce (KvK) Trade Register: Pay attention to name changes, a restart after a bankruptcy, or 'turbo-liquidations' in recent years.
Google reviews and other review sites: Read what other clients say about their experiences with the company. Pay special attention to complaints regarding payments, delivery, or service quality.
Social media: Companies and clients often share their experiences on platforms like LinkedIn and X. Staff turnover, sudden cutbacks, or negative coverage are often early indicators.
Insolvency register: This register can be consulted free of charge via rechtspraak.nl for ongoing bankruptcy and suspension of payment procedures.
News articles: Search for recent news reports that might say something about the reliability of the company. A quick Google search for the company name plus 'bankruptcy' or 'lawsuit' provides quick insight.

3. Be sharp on payment terms

Clear payment terms are not only good for your cash flow, they also provide legal backup. And for a few years now, that backup has been stronger than many entrepreneurs realize.

What the law says in 2026

Standard payment term: 30 days, unless contractually agreed otherwise.
Large enterprise to SME or freelancer: Maximum 30 days. Due to the law against unreasonably long payment terms (since July 1, 2023), longer terms are automatically void.
SME to SME: Maximum 60 days, provided this is recorded in writing.
Consumers: Before you are allowed to charge collection costs, you must first send a free 14-day letter (Wik letter).

What signals do risky clients give off?

Negotiating longer payment terms: A new client who immediately tries to force 60 or 90 days often struggles with cash flow problems. For a large enterprise, such a request is not even legally permitted towards you as an SME.
Rejection of deposits: Clients who refuse to pay deposits can pose a risk, especially when it involves a large invoice amount.
Discussion about general terms and conditions: If a potential client objects to your standard payment term, interest on late payments, or collection costs while they are fully in line with the law, be very careful.
Pressure for fast delivery without written agreements: 'We will arrange the contract later' is a classic signal that occurs more often with non-payers than with good clients.

4. Pay attention to how a client communicates

The way a client communicates, both before and after the invoice has been sent, tells you a lot about their reliability and current financial situation:

Reaction time: Does the client react quickly and professionally to quotes and regular questions, but does it suddenly take a long time when it concerns the invoice? That is no coincidence.
Consistency: Do you receive contradictory information about who is handling the invoice, or does the contact person change suddenly? That often signals internal unrest.
Tone: Clients who immediately go on the defensive or react irritably to a friendly payment reminder prove to be more problematic in practice.
Availability: Suddenly becoming unreachable, being referred to different people, or no longer responding to emails are classic patterns in payment problems.

5. Set up a client acceptance process

Setting up a formal client acceptance process can help you avoid risky clients. During such a process, the new client is effectively screened, and a clear picture of their situation is drawn beforehand. A client acceptance process can be intensive, but it can significantly reduce the risk, especially with large deals.

A good acceptance process usually consists of:

Application form: Ask for at least the KvK number, VAT number, contact details, preferred payment term, and optionally annual revenue or number of employees.
Introductory meeting: Conduct a personal conversation to gain a better insight into the needs and reliability of the other party. You learn more in 20 minutes than from any form.
Reference check: Ask for two to three references from existing suppliers. A client who cannot or will not provide these is answering the question themselves.
Credit check: For orders above a certain amount (e.g., €5,000), you can request a credit report as standard. Do not make exceptions, even with warm leads.
Written documentation: Always record general terms and conditions and agreements regarding delivery or payment in writing. This prevents a lot of hassle afterwards.

6. Monitor your existing clients too

A client who has paid neatly for years can run into trouble within a few months. Bankruptcies rarely come out of nowhere, but they often come as a surprise to suppliers who are not paying attention.

Continuous monitoring is therefore just as important as the check beforehand:

Payment behavior: A client who always paid within 14 days and now suddenly stretches it to 28 or 30 days gives an early warning signal.
Periodic credit checks: Perform regular credit checks to stay informed about a client's financial situation, especially for large invoice amounts or your biggest clients.
Feedback: The sales department, account managers, and customer service staff are often the first to hear that things are not going well somewhere. Ensure these signals are shared with the finance department.
Days Sales Outstanding (DSO): Keep track of how many days pass on average between invoice and payment per client. A rising DSO is the prime early warning signal for your entire client portfolio.

7. Use modern technology

On this point, 2026 has fundamentally different tools to offer than a few years ago. Anyone still trying to spot non-payers manually in Excel is falling behind. Clients who automate their accounts receivable management and deploy smart technology are paid up to 20% faster according to research.

Conclusion

Recognizing risky clients is not an administrative side issue. It is directly linked to your working capital and your growth pace. By checking creditworthiness, researching reputations, maintaining sharp payment terms, and deploying modern technology, you catch the vast majority of problems before they cost money.

But even with the best client acceptance process, non-payment sometimes occurs. And then one rule of thumb applies, the sooner you take action, the greater the chance of a successful collection. After 30 days, you often already have the right to statutory commercial interest and collection costs. You do not need to give those away.

Do you see one of the signals from this blog with your clients, and would you like to discuss this with one of our specialists? Please feel free to contact us!