Check a client
How can you check a client’s solvency before working with them?
Checking a client means combining several consistent indicators before deciding what level of risk is acceptable. No single item guarantees future payment; the aim is to set an appropriate deposit, credit limit and payment period.
Start with the legal identity
Check the legal name, SIREN or SIRET number, address, legal form, activity and status in the French Business Directory. Confirm that your contact is acting for that entity and that the billing details match.
- —Identify the contracting party precisely
- —Look for a published closure or insolvency procedure
- —Keep a dated record of the checks
Cross-check financial and commercial information
Where accounts are available, review profitability, debt, equity, liquidity and their development over several years. Combine financial information with legal events, payment incidents and qualitative evidence.
- —Request trade references for significant exposure
- —Compare the order with the client’s size
- —Reduce exposure when information is old or incomplete
Set suitable payment terms
Uncertainty does not necessarily mean refusing the client. It may justify a deposit, milestone billing, a credit limit or a shorter payment period.
- —Common mistake: relying on turnover alone
- —Review risk when orders increase suddenly
Conclusion
A useful check leads to a documented commercial decision and should be updated whenever payment behaviour changes.