Creditworthiness of a new B2B client: how to check it before granting payment at 30, 60 or 90 days

In short: before granting a 30, 60 or 90-day payment term to a new B2B client, check five things on public sources: who they are (age and activity), the filed financial statements, protests and insolvency proceedings, who really controls them (beneficial owner), and the rating with the estimated operating credit line. Then calibrate the term with a simple comparison: the credit that will remain open for that term must fit within the estimated credit line, not exceed it.

Creditworthiness between companies: what you are really assessing

When a new client asks you to be paid at 30, 60 or 90 days, it is asking you for credit: for the whole duration of the term the goods or services are already theirs, while the money is still theirs. Assessing their creditworthiness does not mean passing judgement on the company, but answering two practical questions: do the public data available show warning signs? And how much open credit is it reasonable to have towards them at a given moment? With a new client the strongest datum of all is missing — how they have paid you in the past — so the check rests entirely on external sources.

The checklist: what to check before granting the term

• 1. Who they are and how long they have existed: company name, VAT number, date of incorporation and declared activity. A company incorporated a few months ago has no filed financial statements yet: this is not a negative signal in itself, but it removes the most solid source on which to base the decision (see how much credit to grant a client with no history).
• 2. The filed financial statements, with their date: net equity, share capital and, when the data is available, the average times with which it pays its suppliers. If the financial statements show that it pays suppliers beyond 60 days, that is a concrete indication of the times with which it could also pay you, regardless of the term written on the invoice. Always check the date: financial statements more than 18 months old are a dated snapshot.
• 3. Protests, insolvency proceedings and encumbrances: events recorded on public sources, each with date and source. An isolated protest from years ago weighs differently from several recent events; an ongoing insolvency procedure is the most relevant signal to know before delivering goods.
• 4. Beneficial owner and directors: who really controls the company, not just who signs the order. A director changed recently is not a problem in itself, but it is a datum to read together with the others.
• 5. Rating and estimated operating credit line: the rating is a summary score on the likelihood of payment irregularities; the estimated operating credit line is a figure in euros, the exposure that the company's indicators show as reasonable. It is the number to use to calibrate the term.

None of these data, on its own, says whether to grant the term or not: it is the combination that builds the picture.

How to calibrate the term: 30, 60 or 90 days do not weigh the same

The length of the term changes how much credit remains open at the same time. With recurring supplies, the credit open at any moment is roughly the monthly amount invoiced multiplied by the months of the term: with supplies of €10,000 a month (example figure), at 30 days you have about €10,000 to collect, at 90 days about €30,000 — three months of goods delivered before the first payment arrives.

The useful comparison is between that number and the client's estimated operating credit line:

• Open credit well below the estimated credit line: the requested term fits; it remains useful to check over time that payments arrive on the agreed dates.
• Open credit close to the estimated credit line: standard tools such as an advance payment on the first order, split deliveries or a shorter term for the first months.
• Open credit above the estimated credit line: a guarantee (surety bond, personal guarantee), advance payment, credit insurance, or a shorter term that brings the open credit back within the credit line.

The decision remains yours: the comparison between two numbers tells you how much margin you have, not what to do. To build your internal credit line combining several criteria (the client's assets, the estimated credit line, your sustainable exposure), see the practical formulas for calculating a trade credit line.

What the law says on payment terms between companies

Legislative Decree (D.Lgs.) 231/2002, art. 4, sets a general payment term of 30 days. In transactions between companies the parties may agree a longer term; if it exceeds 60 days it must be expressly agreed, must not be grossly unfair to the creditor, and the clause must be proven in writing. In practice: 60 or 90 days can be agreed, but they must be written down. What makes a term "grossly unfair" and what happens in case of delay is explained in the guide on how to protect yourself when the client asks for 90 days.

After the first supply: the check does not end at signing

The initial check is a snapshot at a given date. A new set of financial statements, a protest or a change of director can change the picture months later: which signals to watch for, and why they often anticipate the first missed payment, is explained in the guide on warning signs of a client's insolvency. For the full picture of credit line management, from granting to revocation, see the general guide to the B2B trade credit line.

The limit of this check

Rating and operating credit line are estimates calculated with risk management algorithms on public data, not a guarantee that the client will pay. They reduce the uncertainty of a decision that would otherwise be based only on the commercial relationship; they do not eliminate it.