What is default? Understand the causes, impacts and how to avoid it
Posted: Wed Jan 22, 2025 8:37 am
Default is a term widely used in the financial context to describe the situation in which a company or organization fails to meet its financial obligations on time. These obligations may include payment of debts to suppliers, taxes, loans or other commercial commitments. In the B2B (Business-to-Business) context, default can directly impact the operations and cash flow of the companies involved.
Types of default in the business context
Supplier default : When a company is unable to pay suppliers on time, causing delays in deliveries or interruptions in the supply chain.
B2B customer default : Occurs when business customers delay or ukraine phone number list to pay for products or services purchased, impacting cash flow.
Tax default : Involves non-payment of taxes and duties, which can generate fines and legal restrictions.
Main causes of B2B default
The causes of default in the B2B context are varied and often result from internal and external factors, such as:
Disorganized cash flow : Lack of financial predictability can lead to late payments. Learn more about financial planning.
Adverse economic conditions : Recessions and economic crises can affect companies' ability to pay. Learn how to deal with economic crises.
Inefficient credit management : Providing credit to customers without proper analysis increases the risk of default. Here's how to improve your credit analysis.
Supply chain issues : Delays or disruptions can disrupt revenue generation by impacting payments.
Types of default in the business context
Supplier default : When a company is unable to pay suppliers on time, causing delays in deliveries or interruptions in the supply chain.
B2B customer default : Occurs when business customers delay or ukraine phone number list to pay for products or services purchased, impacting cash flow.
Tax default : Involves non-payment of taxes and duties, which can generate fines and legal restrictions.
Main causes of B2B default
The causes of default in the B2B context are varied and often result from internal and external factors, such as:
Disorganized cash flow : Lack of financial predictability can lead to late payments. Learn more about financial planning.
Adverse economic conditions : Recessions and economic crises can affect companies' ability to pay. Learn how to deal with economic crises.
Inefficient credit management : Providing credit to customers without proper analysis increases the risk of default. Here's how to improve your credit analysis.
Supply chain issues : Delays or disruptions can disrupt revenue generation by impacting payments.