Buyer receivables

• Payment terms

  Prepayment, CAD (cash against documents), LC, open account 7–30 days. Each deferred day costs: funding rate × days / 365.

• Documents = control

  Receipts/BOLs/release orders — whoever holds documents controls the goods. Release without originals only to proven buyers.

• Counterparty limits

  Buyer limit = % of working capital. Check registries, debts, cases, payment history. New buyer — smaller limit and prepayment.

• Receivables insurance

  Trade credit insurance or factoring covers buyer bankruptcy/non-payment. Costly, but pays off on large terms.

• Aging and reserves

  Keep an aging report: current, 1–30, 31–60, 60+. Reserve rule: 60+ days — 50%+, doubtful — 100%.

• Delinquency work

  Day 1 — reminder, day 7 — formal claim, day 14 — stop shipments, day 30 — lawyer/insurer. Response speed determines recovery.

In grain, receivables are the top cause of trader cash gaps: selling on terms while buying on prepayment means you finance the chain. The fix — counterparty limits, documents and insurance, not just trust.