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Dr. Andrea Eickemeyer
+49 (0)551 383 15-0

Credit management

All companies, and not only banks, provide credit in enormous volumes, typically in the form of supplier credit. In contrast to the financial service institutions, however, they often have no appropriate risk management system. The accounts receivable resulting from the supply of goods and services often add up to a significant proportion of the balance sheet total. This risk must be evaluated and kept under control. The payment difficulties of your customers, and even complete default on payments, lead to a drop in profits. They endanger your own ability to pay and thereby an essential condition for the existence of your company. Value-orientated credit management with the necessary evaluation and early-warning mechanisms is indispensable if the company is to achieve long-term success.

We support you with the development and improvement of your credit management. Together we develop an electronically supported system for the early recognition of risks that is designed to meet your individual requirements. This results in a reduction of default on your invoices. In addition, IT-support leads to a sustainable improvement in working efficiency: your staff will be relieved of routine activities. Manual monitoring will no longer be necessary. The manual comparison of regularly recurring lists will become a thing of the past. From now on, the system will perform these tasks. On the basis of your credit policy, it gives you targeted information about critical cases. Instructions for measures to be taken are generated automatically according to your requirements. You can use the time saved effectively for tackling the more demanding credit management questions. This enables you to cope easily with a growing customer base or special challenges using your existing staff. Additional personnel are not required. And professional credit management – from the approval of potential customers to dunning and debt collection – is secured.

We are looking forward to working with you.


Credit management based on your financial supply chain

Business initation process

Approval of potential customers

This first stage of a business relationship is of particular importance in this context. You have to identify your potential customers and – assuming a sale on credit for a significant sum of money is envisaged – estimate the risk of default. This does not mean that potential customers with a high risk of default should be automatically refused. It means that it is necessary to proceed in a way that is carefully adapted to the risk. With the help of suitable rating and scoring procedures we put you in a position to evaluate your customers in a sophisticated manner and thus to agree adequate terms and conditions. The validation of the results of the rating procedure used is also one of our services.

Financing of the service

Decisions on the allocation of credit can be made in a variety of ways. Together with you, we work out suitable procedures for determining individual credit limits. Here, there is a particular emphasis on the information that is necessary for limit determination. We work out suitable strategies for obtaining this information for your company. This means using both external information providers and the information that is already available within your company. You will thus be able to award credit on a well-founded basis. Credit decisions depend on a multitude of customer-specific factors in combination with your credit policy. Because these determining factors are subject to continuous change, the credit line allocated must be checked continually and changed if necessary.

Price formation

Every sale on credit brings with it the danger that the resulting invoice will not be paid. This risk of default must be estimated as a probability for each customer and in combination with the amount of the exposure the possible loss at the time of default must be quantified (EaD). Together with you, we develop suitable procedures for the determination of risk-adjusted payment conditions. This enables you to address your default risks on the basis of individual customers and to allocate supplier credit using parameters appropriate to the risk involved.

Securing risks

The risks entered into can be secured in various ways. This includes the deposition of securities such as bank guarantees or surety bonds. In addition to the securities that your customers supply you with, there is the possibility to take out commercial credit insurance. This insures you against default on payment. The application for individual limits and the checking of credit below the discretionary credit limit are therefore essential tasks of credit management. Factoring is a further form of security. In this case, factoring companies purchase outstanding claims and, depending on the respective agreement, can take on the risk of default and/or provide debt collection services. We will be pleased to support you with the efficient and effective integration of security measures into your existing systems and credit decision routines.

Service provision

Business development process


So that you can assert your claims against your customers a prompt and complete invoicing procedure is essential. We can support you in designing efficient processes in the context of invoicing. This ranges from the automatic processing of invoice positions to the sending of invoices that are due for payment (postal and electronic) right up to the updating of open positions in real-time for each customer.


If disagreements occur between you and your customer in relation to goods supplied or services performed, fast and comprehensible processing is important. Such disagreements can be of a technical, logistic or financial nature. The method of dealing with complaints must be clearly defined and, when possible, IT-supported. The current status of the complaint can thus be seen at any time. This also makes it possible to avoid sending dunning letters relating to invoices for the goods or services to which the complaint applies.


A large number of payments reach your company daily. We support you with the systematic processing of your open and paid positions. Conclusive key figures provide you with a concise overview. With IT-support, the relevant information can be made available in real-time. As a result, you are fully aware of the payment behaviour of your customers and therefore also your DSO (days sales outstanding) and the capital costs associated with it. You can thus introduce appropriate measures according to your internal credit policy at an early stage.

Dunning and debt collection

Where there is light, there are also shadows: not all of your invoices will actually be paid. To minimize your losses from overdue claims you need to implement an efficient dunning procedure. This includes prompt payment reminders as well as passing on the claims so that necessary debt collection measures can be taken. The automatic blocking of deliveries to customers who have not paid invoices is also part of an efficient dunning procedure, which we would be pleased to develop with you according to the requirements of your company.