When any creditor chooses not to renew a debtor’s credit line – other creditors should become proactive and try to find out why.
Below are two suggestions to help determine the underlying reason.
1. Pull a trade report on the debtor to find out if payment habits have changed.
2. Request an updated financial statement from the debtor. If the debtor does not have a current statement, request one.
Note: If they are a public company, you can get the most recent updated financials from the internet.Commercial Collection Agency