One prompt payment does not establish a changed customer pattern

The customer pays promptly once

Suppose a customer with a history of slow payment clears a recent invoice on time and asks for a much larger order on credit. The sales team sees the receipt as proof that the account has returned to normal.

Welcome the improvement without overstating what one payment shows. Review the broader account and proposed exposure before deciding what arrangement is appropriate for future work.

Check what remains outstanding

Reconcile older invoices, credits and any unresolved dispute. A prompt payment on a small new invoice may coexist with a material overdue balance that has not changed.

Identify the customer's explanation and actions on those older items. Keep the assessment based on the whole account rather than selecting the most encouraging recent transaction.

Compare the new request with the evidence

Look at the size, duration and funding needs of the proposed order. A small invoice paid within terms may not demonstrate capacity to support a much larger balance over a longer period.

business.gov.au's payment-terms guidance discusses managing customer credit and setting clear expectations. Use the available account evidence to inform that review, while recognising that past payment never guarantees a future result.

Source: business.gov.au: Payment terms

Consider a proportionate future arrangement

Where commercially appropriate, discuss a staged approach that matches the business's ability to fund and monitor the work. Check the existing agreement and obtain advice before changing any current obligation.

Do not present an internal credit review as a right to cancel committed work or disregard accepted terms. The decision about future discretionary exposure needs to be kept distinct from existing responsibilities.

Define what will be reviewed next

Record the period or transactions management intends to monitor, the information required and who will assess it. Avoid a vague promise to restore normal terms once things look better.

If improvement continues, review it on the agreed basis. If the account deteriorates again, identify the specific change and the appropriate response rather than relying on an outdated positive impression.

Take a balanced view to the next order decision

Bring the current balance, recent payment history and proposed new exposure together. State what the evidence supports and what remains uncertain.

The aim is neither to ignore improvement nor to expand credit on optimism alone. A documented review helps the business rebuild a useful customer relationship at a pace its cash position and information can support.