11 Feb 2023 - AUDIT CREDIT CONSULTANCY
- You have credit insurance?
- How much you spend annually on insurance coverage?
- Why don't you invest in your company, incurring low costs, implementing optimal credit process management, which has immediate and positive consequences?
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The skills and knowledge deriving from correct management of the credit process allow the entrepreneur to take on the risk, arising from its trade credit, on their own without transferring it to the third party, i.e. to the insurance company.
Credit insurance is of great importance and represents a very useful tool for abroad.
In Italy, you have the possibility and awareness of having all the information and tools to manage the risk yourself: invest in COMPETENCE AND TRAINING with respect to the management of your credits it represents an opportunity.
Through the Credit Process Test and Gap Analysis you will be able to verify the risk areas, the areas to improve and those that are being carried out effectively.
This way you will have the opportunity to improve yours cash flow, to reduce debts with the bank, the legal and administrative costs for the management of outstanding debts through external providers (law firms and recovery companies), liquidity crisis situations, and you can improve the rating In fact, banking institutions consider the quality of commercial credit a parameter for the Risk Based Pricing.
Even the EBA, that is, the European Banking Authority faced with hundreds of billions of impaired loans (NPL c.d. Non Performing Loans) which have affected multiple banking institutions in the last decade has prepared new Guidelines with which the Regulator, has launched a new challenge by switching approaches “RE – ACTIVE” (management logic of “deteriorated in existence”) to an approach “PRO- ACTIVE” i.e. credit management from the very early stages of life: exactly what could happen, even in your company, through a credit process carried out in accordance with UNI PDR 44 practice: 2018.
In short, a professional approach to managing the credit process allows the entrepreneur to create value for his company without necessarily having to but only possibly, transfer the risk of insolvency of its customers to the third party (Insurer).
Lawyer. Filippo Lipiani
Auditor Credit Management