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An old business saw goes, “Each supply, from delivery to payment, must be considered as a beautiful gift to the customer."
| This is so true. Prevention has become an essential element for companies of any size, not only to avoid or limit damages, but also to detect any further business opportunity.
This task will only be beneficial if it provides the ongoing acquisition and processing of the information generated by both internal and external sources.
Clients and prospects must be fully evaluated, in order to assess their financial status and the extent of the credit they might be granted. | 
""Who hasn’t recorded
a write-off in their last
balance sheet?"
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Where a payments’ history is available, it is necessary to thoroughly analyse the customer’s paying profile, in order to understand their habits, turnover, exposure, overdue payments, and DSO.
Only the accurate analysis of each relevant variable enables a reasonable assessment of each position, as well as the definition of the correct rating and risk class. |
Level of criticality
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The level of criticality is determined by the ongoing evolution of both the environments and the information which have been collected, i.e. by how much the indicators are up to date. A customer ‘s risk can dramatically change from one day to another, because of a serious alert received from your provider of commercial information, or maybe because of speculations from a salesperson or collector, or maybe just because of an increase in purchases and a contemporary payment delay.
It is obvious then, that detecting any discrepancies in your customers’ portfolios is not an easy task. You need specific skills, experience, some intuition, and a lot of time and patience.
There are also some routine activities, like reviewing credit limits, defining payment terms and conditions, and all those activities that need to be carried out when managing “hot” situations. |
Prevent with
Credit Limit
- Trend analysis and history for the company and by customer
- Dynamic and real-
time classification of the credit positions based on the necessary corrective action
- Simulation tools for credit limit review
- Build your own
dynamic credit line (Custom)
- Automatic acquisition and integration of information and ratings (Evolution release)
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Credit Limit enables prevention because it is a real automated check-up system.
The database is updated monthly with a few summarised information about your customers, and the system can accurately measure each position, comparing all the indexes and alerting you about the higher-risk profiles and the profiles showing the highest growth potential. Furthermore, the system can suggest the most effective action available, based on the evaluation policies determined by the Credit & Risk Manager.
By leveraging the processing phase automatically carried out by the system, you can easily detect at all times the most critical positions, and then act promptly and with the most suitable contacts. For example, you might request a detailed report before re-evaluating a credit line, or you might alert your Sales team about a critical situation due to the increase of the DSO index compared to the historical data, as well as informing them about any position which show a high growth potential, and which might lead to new business opportunities.
Credit Limit is also simple and straightforward to use. Each numerical and graphic element is easily identifiable by colour. For example, critical situations are characterised by the colour red. On the other hand, positive situations are characterised by the colour green. |
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