Professional, independent consulting

We support you in the development and improvement of your credit management. With our extensive experience, we are aware of the pitfalls and know exactly in what areas you need to act to ensure professional credit management, from the checking of prospective customers to dunning and debt collection.

Every company and industry has specific needs. We can advise you, for example, on setting up the right information strategy, designing your credit policy or integrating customer value into your credit management. As neutral, competent consultants, we also stand at your side for all other issues relating to risk evaluation and credit management.

 

  Get in touch and benefit from our professional consulting! 

 


 

  Information strategy

What information do you need for the optimal evaluation of your customers/risks and to make fast and safe decisions? There is a wealth of offers from information service providers and commercial credit insurers, and your internal information also needs to be considered.

That is why it is a good idea to divide your information strategy into several areas, such as sales, existing customers and new customers. When acquiring new customers, the information basis depends in part on the (desired) business relation. Are you looking at a one-time order, or rather at a long-term relationship for which credit limits need to be decided? Processes also always need to be optimized in terms of information costs. It therefore makes sense when looking at new customers to systematically search through your own data first to make sure you really are dealing with a new customer. The next step should usually be a pre-investigation with low-cost information. One option here is the trade-up option provided by some information agencies (only the most expensive product about a customer called up on any given day is invoiced).

In contrast, existing customers mostly require permanent monitoring. This monitoring should identify anomalies or changes as early as possible. The question here is which general strategy to follow in your monitoring of existing customers. Is the evaluation of internal information such as payment records sufficient? What can payment record pools offer? What automated mechanisms for starting and ending monitoring could be useful?

It is usually a good idea to review your information strategy constantly. A new information provider may enter the market, or your business activities may shift to a new country, in which case a local provider may be the right decision for you. We are happy to advise you on the development of an information strategy that is precisely tailored to your needs.

 


 

  Credit policy

Your credit policy defines the rules and limits for credit management within your company. It provides clear guidelines which, for example, determine the allocation of credit limits and payment terms, define authorization steps and escalation options, and regulate the measures to be taken. A good credit policy regulates all credit management processes in the form of operating instructions and is comprehensively documented. If you already have a documented credit policy, so much the better. If you don't, we are happy to help you design or improve it and analyse your processes and evaluation rules.

Of course, we believe that the implementation of a credit policy should ideally be IT-supported. The advantages are clear: security, transparency, speed. But regardless of whether or not you decide to go for an IT solution, we provide independent and reliable advice on the optimal design of your individual credit policy.

 


 

  Customer value and risk/yield evaluation

Active, targeted customer acquisition and care ensure sustainable success. But which of your customers are particularly important for your company's success? Which customers should the sales department focus on most strongly? These considerations bring forth the tension between the highest possible turnover and the lowest possible default risk. The customers with outstanding creditworthiness are not necessarily those with the highest contribution margin, and vice versa. In fact it can often make sense for a company to do business with customers with a lower creditworthiness if the margins are high enough and the business is properly hedged. The risk costs need to be precisely calculated to ensure that the expected profits surpass them.

In addition to just looking at a customer's contribution margin, a sophisticated evaluation of customers that takes into account all available information is therefore needed. Customer value goes a step further and can consider other indicators besides economic figures like contribution margin and return on sales or the expected duration of the relationship. These include qualitative factors such as customer satisfaction. Complex customer structures covering subsidiaries, branches, and countries of operation are included when measuring the customer value. With the aid of customer value, your company is able to segment its customer portfolio and specifically target certain customer groups. This allows, for example, mailing actions and campaigns to be adequately tailored to the target group. Having a detailed typology of your customers further enables you to quantify the probability of success of your products. We can support you in building a modern database marketing system that enables you to successfully approach your customers and manage your customer portfolio thanks to customer typology. The complex data-mining is executed with the aid of statistical analysis processes.

Together, we can develop your company-specific customer value strategy and support you in its implementation.