Why is Credit Management so important?


Today the challenge for all Italian companies is twofold: predicting the risks of a new market scenario and protecting their credits, using tools and strategies that are at the height of the emergency.

What are commercial credits

The totally unpredictable scenario we live in today has led companies to have to quickly change their paradigms of action, facing a challenge that until a few months ago seemed unimaginable.
From a perspective like the current one, it is necessary to clarify and explain first of all what commercial credits are, to then present a form of accessible solution to better face credit risk.
Commercial credit is defined as that form of credit that is not granted by banks or financial institutions but by the companies themselves, to be brief, it happens when a supplier company grants a payment extension to its client company.
It is evident that when a company arranges for an extension to a payment, it incurs numerous risks especially in the case of small and medium-sized enterprises, where there are often no figures capable of assessing the customer’s solvency in advance and foreseeing all the exposures connected mismanagement of trade credit.

How to manage a crisis

When a company is faced with a crisis situation whose protagonist is unfortunately the debt collection , it is important, but above all necessary, to find effective measures and strategies to restore management processes.
As is often said, every crisis can turn into a new opportunity. To achieve all this, it is necessary to face it with determination, to reach a concrete and definitive solution in the shortest possible time.

Yes, but how? Let’s first follow an action pattern:

  • the management of credit recovery must start from a deep analysis of the current state;
  • proceed immediately to solve the problem with effective tools;
  • then prepare to face what will come next, when the company has repaid its credits.

Three steps that together represent a single topic, namely the protection of credit management processes.

Debt collection today

As it is said more and more often, prevention is better than cure and even for such a complex topic as that of trade receivables and their recovery, the best choice for a company is to evaluate all the protection systems of the company in the best possible way. ‘activity.
This approach makes it possible to anticipate any crises and therefore to adopt all the necessary measures to protect credit. There are two ways:

  • the first is to rely on a expert company that deals with all operations necessary for credit recovery , following both amicable (extrajudicial) and judicial recovery processes, operating in the utmost respect for procedures and regulations;
  • the second is to entrust credit management to a credit manager, who will be assisted by a team of professionals in reorganizing the credit management process.

The role of the credit manager

Until a few years ago, credit management was carried out by the administrative sector, an activity that focused largely on pressure on customers through a massive reminder of unpaid invoices.
Today credit management commercial within a company is frequently hired by a credit manager who takes care not only of a more reasoned liquidity return program but also assuming a broader role, optimizing the information flows of the customer portfolio and thus improving turnover of the company.
Basically not only credit recovery but also risk management based on a careful analysis of the financial capacities of the various customers, monitoring their evolution over time and avoiding credit companies from suffering non-payments.
To be at the center of the market and face your competitors safely, our company is the right partner to support you in the management of and your trade receivables, with a team of lawyers and professionals who have advanced skills both as credit manager and as consultants for the debt collection .
The results we will obtain for you with our consultancy will be one of the decisive aspects for the success of your business.

Do you need further clarification? Our experts are at your disposal.

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    Credit Group Italia is accredited by the Bankruptcy Section of the Court of Milan as a judicial and extrajudicial debt collection company.