Red flags matter when the record stops making sense. Inconsistencies, missing context, or repeated changes usually mean you need a deeper review.
Common warning signs
- inconsistencies matter more than any single signal on its own
- repeat patterns often matter more than one isolated event
- opacity or missing context can be a warning in itself
What to review next
When one of these signals appears, review the surrounding context before deciding whether signs a company is in financial distress should change your view of the counterparty.
When the signal matters most
A warning matters more when it appears alongside other clues, repeated changes, or evidence that the record is incomplete.
What to do next
Treat the signal as a reason to gather more context, not as proof on its own.