Pillar
Credit risk: assessing customer risk before it costs you money
Credit risk is the risk that a customer doesn't pay, pays late, or only pays part of what's owed. Credit risk management is systematically assessing, limiting and monitoring that risk: verifying a company's identity and existence, assessing creditworthiness, setting limits and monitoring behaviour. Credimigo runs these checks automatically for every debtor and every uploaded invoice, and asks for human confirmation rather than blocking outright.
At a glance
- Debtor checks
- Company register, VAT/VIES, country and address
- Invoice checks
- Complete, incomplete or possibly edited
- Outcome
- A warning, never a hard block
Three types of risk you can manage
Not every payment problem is the same. The right response differs by type.
- Identity risk: does this company actually exist, and is the person ordering authorised? Resolved with company register and VAT verification.
- Credit risk: the company exists but can't or won't pay. Resolved with limits, deposits and behaviour monitoring.
- Fraud and manipulation risk: edited invoices, mismatched IBANs, or a sender domain that doesn't match the company.
Signals that actually matter
These indicators predict payment problems better than a set of annual accounts.
- A debtor who has broken previous promises.
- A sudden rise in the outstanding balance from the same customer.
- Invoices that are consistently only paid after the first reminder.
- A VAT number that doesn't validate in VIES.
- A bank account in a different country from the one invoiced, with no explanation.
Why Credimigo warns instead of blocking
An automated block based on a single signal costs you revenue and customers, and is often wrong. Credimigo always shows what was flagged and why, in plain language, and leaves the decision to you. Only cases with clear anomalies land in the review centre.
Frequently asked questions
How do I check whether a company is creditworthy?
Combine a formal check (registration, VAT/VIES, address) with behaviour: how has this customer paid before? Behaviour is the strongest predictor.
What do I do with a new customer with no history?
Work with a low starting limit, a shorter payment term or a deposit, and increase it as payments come in on time.
How do I spot a fraudulent invoice?
Watch for amounts that don't add up, an IBAN that doesn't match the country, missing VAT details and document metadata suggesting it's been edited. Credimigo checks this automatically on every upload.
What is a Trust Score?
A score Credimigo builds per organisation from company verification, domain checks, accounting integration, successful cases and fraud signals: Excellent, Good, Building or Action needed.
Analyse your first invoice for free
Upload an outstanding invoice (PDF, PNG or JPG). Credimigo reads it, gives you a Recovery Score and prepares a correct final reminder in your customer's language, ready to send. Your first reminder is free.
Analyse an invoice free