Ф.Ритьес. Значение эффективного кредитного менеджмента во время текущего кризиса на международных торглвых площадках
F.A.H. (Francs) Rietjes. The value of effective credit management during this crisis in the international marketplace
Civil engineer, CEO i-ASE, www.i-ase.nl
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Статья посвящена особенностям и проблемам кредитного менеджмента в
ситуации международного финансового кризиса, который в 2009 году стартовал в
США и затем распространился на весь европейский континент. Правительства всех
стран Европы старается защитить себя от последствий кризиса – растущих
банковских ставок и повышения уровня безработицы, неэффективности работы
капитала путем ухода от евро-валюты.
Кроме того, в статье затронут
вопрос о влиянии евро-кризиса на международный (неевропейский) рынок, где
страны, занимающиеся экспортом, почувствовали нестабильность еврозоны.
Автор как представитель i-ASE
компании (аудиторская фирма) предлагает консультационные услуги национальным и
международным аудиторским фирмам, компаниям, промышленным ассоциациям и группам
international and mainly the European markets are in crisis. Starting in 2009
as a financial crisis in the USA (related to the mortgage system for domestic
housing) the crisis is rapidly spreading its wings over the European continent.
After Greece, now Italy, Spain and France are suffering from high interest
rates on bonds and growing unemployment rates. More and more governments are
discussing the long term value of having joined the euro. This euro-crisis in
it turn has its effect on the international (non-European) market where
countries that rely on export feel the instability of the euro-zone.
Management as a business discipline is seen as a controlling mechanism of the
finance department to ensure that invoice sent to customers is paid for by
these customers. In general, companies have policies in place that allow the
finance department to act on customers that are reluctant to pay. In practice
these policies do not automatically result in working procedures for staff that
ensure a consistent and predictable follow up on overdue invoices.
result most companies have a significant amount of unpaid and overdue invoices.
One could say that companies are funding their customers in this situation.
These funds are generated from own equity and banking facilities.
This is often
expressed in the financial ratio DSO (=Days Sales Outstanding). DSO is
calculated as the number of days average sales divided by the outstanding
invoice amount. The higher the DSO the less effective your Credit Management
terms a high DSO has the following implications:
- Negative effect on
business working capital
- Loss of interest on
- Interest paid to banks
or opportunity costs on equity allocated to Credit Management
- Risk of bad debts
importance of effective Credit Management in crisis situations
In the current
crisis we see that:
- More and more companies
have trouble paying the invoices in time
- Sales are dropping for
- Banks are less able and
willing to lend money
the financial implications of a high DSO or failing Credit Management the
importance of effective Credit Management in crisis situations is even higher.
- Higher pressure on working
- Higher risk of bad
- Limited source to
attract additional funds
the crisis sales will drop for companies where, at the same time, invoices are
paid even more slowly than before. This creates a growing pressure on working
capital. Cost-cutting is one response to this situation which will result in
lower cost-levels. But too much cost-cutting will slow your company down and
make your company less competitive in the market. Another option, other than
cost-cutting, is to focus on the accounts receivable. In other words, making
sure you get your invoices paid.
You achieve this
- Be top of mind for your
customers as it concerns accounts payable
- Know who you are doing
- Be predictable in your
credit management approach
- Be flexible
- Review your credit
management policies, working procedures and tools used
sure that you know how your customers are doing. New customers must be screened
before you supply them for the first time. Credit information companies provide
you with financial ratios of your customers. Based on these financial ratio’s
you can better decide whether or not to except this customer and, in some
cases, even confront your customer with these ratio’s to discuss the situation.
This will limit the risk of losing customers and having to write off bad debts.
trouble to pay the bills will choose to pay the suppliers that either have a
strategic role for the business (e.g. suppliers of raw materials) or that have
a strong policy in place to follow up on overdue invoices (e.g. top of mind).
Making sure that you are in close contact with your customers, trying to have a
flexible but clear approach to payment of the invoice(s) will create a more
predictable payment behavior of your customers. With flexible, we mean, that it
is better to agree on a payment facility than pressure the customer in paying
the full amount at once (when that is not possible).
companies have policies in place but lack effective working procedures and
tooling. A major part of time resources invested in credit management is lost
in administrative work, like updating spreadsheets, producing
business/management reporting and internal communications on customer specific
issues, like during complaint handling. Tools are available that help you free
the time of your staff so that they can spend more time in contacting the
customers, making payment agreements etc. Using tools that support complaint
management, facilitate emails functionality, file building will support your
staff in working more effectively.
the end of the line, ineffective credit management could mean that your are, at
a point in time, unable to pay your own suppliers. They might not be able or
willing to be flexible in their credit management policies and will force you
to pay the bill with any means at hand.
is an accountancy service organization.
clients are large national and international audit firms, companies, industry
associations and groups of entrepreneurs. i-ASE delivers advice and consultancy
services and has its own production center for the financial and administrative