---
title: "Danger Signs"
canonical: "https://kb.myframeworks.com.au/space/FRAM/28382470/Danger%20Signs"
format: markdown
---
Inevitably there are situations where customers take credit greater than that allowed, and it is a highlight of a good credit control management system that the customer is returned to standard terms as soon as possible. If the supplier does not force compliance, it is unlikely that the purchaser feels any necessity to comply with terms. It is important to look for danger signals that might arise when accounts break standard terms.

Some of the most common signals are:

| **Signal** | **Description** |
| --- | --- |
| <span style="color: #ff0000">**Payments on Account**</span> | Where a customer was paying total invoices promptly, there may be pending problems if they suddenly start to make partial payments on account.   
This could suggest cash flow problems and should alert the credit manager to take action.   
Pay special attention if they are in a risk group. Use the risk code (0-9) or the customer group code to flag these types of customers. |
| <span style="color: #ff0000">**Cheque in the Post**</span> | Where a customer delays the payment by continually promising to pay. The credit manager should be aware that problems may be developing.   
Use your diary system to ensure prompt follow up on the promises made and that the follow up is made as arranged. |
| <span style="color: #ff0000">**Failure to Return Calls**</span> | Where a customer refuses to take or return calls there is obviously something wrong.   
Where personal contact cannot be made, an appropriate letter must be sent, and the decision should be made whether or not this customer is wanted. |
| <span style="color: #ff0000">**Cheques not Honoured**</span> | This is a danger signal, and it is a clear indication that a business is suffering cash problems when its bank refuses to honour cheques.   
After drawing the distinction between cash flow reasons and technical reasons, get your money and get out. |