A customer wants to place a huge order on credit terms — how do I fund the exposure?

A big order on credit ties up your cash and puts it at risk; finance funds the exposure while credit checks and, ideally, cover keep a single order from becoming a single point of failure. A large order on credit means funding the cost of delivering it and carrying the risk that the customer doesn't pay. Both need managing before you commit.

A customer wants to place a huge order on

2 min read

Big credit orderCash + risk

Fund the exposureWorking capital

Manage the riskCheck + cover

Two problems in one order

A large order on credit means funding the cost of delivering it and carrying the risk that the customer doesn't pay. Both need managing before you commit.

Fund the delivery

A working-capital facility covers the cost of fulfilling the order, and invoice finance releases cash once you invoice — so the order doesn't lock up all your cash.

Manage the credit risk

Credit-check the customer, consider trade credit insurance for a large exposure, and stage delivery where you can. See protecting your business from a bad debt.

What it means for you

Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online when the numbers work.

Frequently asked questions

Should I give a large customer credit terms?

Only after credit-checking them and, for a big exposure, considering trade credit insurance. Fund the delivery with a facility so the order doesn't lock up your cash, and stage delivery where you can.

How do I fund a large order on credit?

A working-capital facility covers the cost of delivering and invoice finance releases cash once you bill — so you carry the credit exposure without draining your cash reserves.