One Customer Owes Half Your Receivables. What Happens If They Stop Paying?

A large customer can make growth feel secure. Orders are predictable, production is efficient and the relationship may span years. But if that customer delays payment, disputes invoices or becomes insolvent, the supplier can lose revenue and working capital at the same time.

Trade credit insurance is one tool for managing that exposure, alongside credit controls and deliberate customer diversification.

Measure the exposure honestly

Look at current outstanding invoices, approved but unused credit, work in progress and orders that cannot easily be redirected. Group connected buyers where financial trouble could spread across entities.

Insurance does not replace credit discipline

Policies commonly require credit limits, reporting and action on overdue accounts. The sales team needs to know when a late payment must be escalated rather than quietly extended.

• Set authority levels for customer credit.
• Review ageing and adverse information regularly.
• Record disputes separately from simple late payment.
• Understand waiting periods, retention and recovery sharing.

The practical takeaway

The goal is not to stop selling to your best customer. It is to ensure one difficult account cannot decide the future of your own business.

Coverage, exclusions, limits and claim requirements vary by insurer and policy. Read the customer information sheet and policy wording before you buy or renew.