A problem receivable requires a fresh credit assessment
Once special intervention is decided, the customer’s total financial structure, cash-generating capacity, business sustainability and current risk are reassessed.
EXECUTIVE SUMMARY
Executive Summary
This area covers customers and receivables that now need special intervention beyond normal monitoring and collection. The key question: “Can this customer really be rehabilitated? If so, from what source will they repay; if not, how will the company exit this risk in a controlled way?”
Key Management Areas
6 topicsContinuing to sell and increasing risk are treated separately
New sales may support the customer’s business but can increase total risk; cutting off trade abruptly can make it harder to recover the existing debt. Rehabilitation is not the same as continually financing the customer’s business with new supplier credit.
Restructuring starts from the customer’s total debt picture
Rescheduling only your own receivable may not solve anything if the customer’s total debt structure is unsustainable. We assess whether restructuring genuinely improves the total financial burden.
Restructuring is a new credit decision
It must be possible to explain which cash source will fund the new payment plan. The repayment source, credit capacity, target risk level and collateral structure are reassessed under the new terms.
Time and financing charges carry an economic cost
If the principal cannot be collected, financing charges alone do not make the receivable healthy. The restructuring period, financing burden and possible erosion of the receivable’s real value are assessed together.
“If the principal cannot be collected, neither can the financing charges on it; a receivable that grows on paper is not an economically more valuable receivable.”
Good restructuring reduces risk over time
Success is not just rearranging instalments, but shrinking total exposure. If no repayment source emerges or the risk grows, a controlled exit comes onto the agenda.
WITH ALMERA
What changes when ALMERA comes in?
01The problem customer goes through a fresh credit assessment; total debt, cash generation, repayment source and collateral structure are assessed together.- 02A Rehabilitation → Restructuring → Risk Reduction → Controlled Exit management path is set up.
- 03Whether the restructuring is working, whether the receivable’s economic value is preserved and whether total risk is shrinking are made measurable.
THE ALMERA VIEW
Restructuring is not just resetting due dates; it is reassessing the repayment source, credit risk and security structure.
Good restructuring doesn’t just change payment dates; it winds the risk down over time.