Table 2

Stages of the credit process and the corresponding survey questions

Stage of the credit processSurvey questionRespondent's reply
Organization of the management of accounts receivableIn order to manage their accounts receivable, the businessconsults external lawyers
relies on in-house lawyers
handles contracts and debts on their own
accepts the contract terms imposed by the counterparty
Assessment of counterparty riskAt the contract stage, do you check your potential counterparty's financial standing?they do not check the financial standing of a potential counterparty
they examine the financial statements in the National Court Register
they check whether the counterparty is listed in the National Debt Register
they verify the counterparty with a mercantile agency
they verify the counterparty with a credit bureau
they employ other measures
Determining payment terms for the counterpartyDo you have the contracts you sign read by a lawyer?yes
no
Determining payment terms for the counterparty (security)Do the contracts you sign have debt security?yes
no
Decision-makingDo you choose your counterparties carefully or is the contract concluded because the market shows it is wise to do so?careful choice
market choice
Collection of overdue amounts receivableWhenever an amount becomes overdue, does the entrepreneurgo to court to claim it?
resort to mediation?
resort to a conciliatory procedure?
resort to arbitration?
Source(s): Authors’ own elaboration

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