Navigating Industry-Specific Credit Management Trends

In this part of our interview series, Thomas Lundström, Founder of CapAid, discusses the unique challenges faced by different industries in credit management and how ACE is tailored to meet these specific needs. 

Are there any industry-specific trends in credit management that you believe are particularly noteworthy?

“ The challenges are consistent across industries, but nuances are depending on the sector. For example, in the Service industry, companies often deal with long sales cycles and complex invoicing processes. Service companies typically have to wait several weeks or even months between delivering the service and receiving payment, which can create significant cash flow challenges. 

In Manufacturing and Wholesale, the challenge is often that the customers can be many times bigger than the seller. It is very hard to avoid giving longer payment terms when your policy and arguments are weaker than the purchasers. This creates a situation where the smaller company with higher financing costs has to borrow money to cover longer payment terms. This is a big inefficiency in the total supply chain cost structure, the only one winning is the banks and factoring companies. ”

ACE is designed to adapt to these different industry needs. By providing an industry solution of how to tackle the challenges, it gives an opportunity to take a giant leap in credit management. 

Want to see how ACE can benefit your business?

Thomas Lundström
Founder & Chair of the Board, CapAid

Thomas is the founder and driving force behind CapAid. He holds a Master's degree in Economics from Hanken School of Economics in Helsinki and is passionate about value creation and helping others succeed.

He has over 30 years of experience in financial consulting, including areas such as working capital management, corporate financial risk management, and financial steering.