New customer: investigation should be carried out when credit to this customer is granted. You should not only rely on the information provided by the customer.
Periodical investigation: as we are doing business in fast changing environment, periodically credit research is necessary in order to update customer’s information and maintain sound credit management.
Increase of credit transaction or change of transaction patterns: due to the business expansion of customers, transaction credit will increase accordingly. However, you should investigate the real reason of the expansion. You also need to do an investigation you’re your customers’ transaction patterns are changed.
Abnormal order appearance: sudden increase or decrease orders or few quality requirements can be abnormal orders. There may be some hidden frauds.
Abnormal status of customer can be default of their customers, restructuring of the company or change of the top management.
