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7 Warning Signs Predicting Bad Debts From Your Spanish Debtors

Giving credit to international customers requires being optimistic and trusting. However, you’re likely to end up growing more cynical after customers fail to pay in time. Credit flow is the backbone of any business. To ensure that your business survives requires being vigilant with your accounts receivables. This is where prevention of bad debts comes in. Before a debt goes bad, there’re some early warning signs you might have overlooked. This article has 7 red flags not to ignore to avoid bad debts from your Spanish customers.

Sudden change in payment habits

Have you noticed customers who used to pay on time now paying late? This is a clear sign that something is wrong. Consider sending a serious payment deadline for all debtors. In case a customer fails to comply, the next step would be to have an international debt collection agency go after them. The agency will do whatever it takes to collect your money from the customers.

Slowed economy

International trade is greatly affected by whatever happens in your customers’ country of origin. This is a general warning sign that things aren’t okay especially if the slowed growth is affecting your customer’s industry. To stay on top of your accounts receivables, ensure to act quickly to avoid getting caught on the wrong end. Turn the account over to a professional agency to collect your debt as soon as possible.

Not responding to your calls

You’re headed for trouble when a debtor goes silent on you. In case your payment reminders don’t get any response, consider professional debt recovery in Spain. The agency usually has professional and experienced locally based debt collection attorneys to contact the debtor. These usually understand the Spanish jurisdictions regarding debt collection for a hassle-free process. Professional debt collectors require no prepayment and file opening charges to embark on collection debts from your customers.

Admission of cash flow problems

It’s good to follow up on overdue accounts promptly and you have to sniff out the cause of the delay. Perhaps the customer admits that customers are taking longer to pay. This is an indication that the customer will only pay you after receiving payments. To make your debtor put you as top payment priority, have a professional debt collection agency go after them. This will make you realise that you’re deadbeat on getting your account cleared at whatever cost.

Entry of competitors in the debtor’s market

Any business that has been operating successfully might not be in a good position to deal with sudden entry of competitors in the market. Winning customers becomes a tag of war. If you suspect that this might be happening to your debtor, this is the moment to become firm with demanding your payment. Although your customer might be making changes to stay in the market, it’s important for them to clear their debts.

Decline in product quality

A company that usually slashes prices obviously lowers the quality of products or products. This might be driven by the entry of competitors as noticed earlier. Slashing prices leads to deteriorating cash flow making the business unable to pay suppliers and staff. Look out when your customer’s once-great service or product deteriorates or they become slow when fulfilling orders. The business is going downhill and you have to act quickly to collect your debt before it fails.

Rebranding of the business

If your customer was the market but now marketing themselves differently, you have to be worried. It’s a sign that they’ve lost their market appeal and no longer make the money they used to. The rebranding is a desperate move to survive turbulent times. To ensure that you collect your dues, find an appropriate time to send a debt collection agency to pounce on them. This is the trick to ensure that you collect your overdue debts.


Bad debts don’t just happen without any warning signs. Vigilance and acting quickly as soon as you notice any of the above red flags are very important. Factors like the entry of competitors, slowed economy, non-response to your calls, and admission of cash flow problems might hinder the debtor from meeting their obligation. However, being proactive and contacting an international debt collection agency to pursue your debtors is highly recommended.


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