Facts & Experience

Credit management built securely and profit-oriented.

Creditworthiness assessed with Z-score and ratings, credit limits flexible but calculated – closely coordinated between Sales, Finance and Legal.

−100%

Major customer defaults

−80%

Overdue receivables reduced

+8%

More turnover through precise credit limits

−12days

Fewer Days Sales Outstanding

Initial Status Quo

From gut feeling to systematic customer and credit risk management

An industrial company grew in turnover but had unclear creditworthiness assessments, rigid credit limits and reactions to payment difficulties came too late – resulting in high individual write-offs, tied-up working capital and rising risks to corporate success.

Implementation

Steps to a secure and sales-promoting credit control system

Lessons Learned

Our main conclusions from the process

Four points with which turnover opportunities can be used and defaults significantly reduced

Strategic rating instead of gut feeling

In-house rating by sector, size, A1–E2

Without structured rating, limits and terms remain chance. Clear, measurable data provide the necessary clarity.

Control credit limit according to risk

Flexible but justified

Individual considerations only pay off when based on clear rules. This also allows sales opportunities to be increased.

Use reminders as early warning

Understand earlier, before it burns

Those who only react after the third reminder usually lose hard cash.

Clear escalation, clear roles

Sales, Finance, Legal - one team

Negotiating and being firm require a shared, fixed roadmap.