The Impact of Credit Management Trends on Businesses
Continuing our discussion on credit management trends with Thomas Lundström, our founder and Chair of the Board, we explore how these trends are impacting businesses, especially in terms of working capital management.
Q: Is credit risk a trend you see right now? And how is it impacting businesses, especially in working capital management?
“I see one trend where companies use insurance to protect themselves. The other trend is using information about companies to have a good analysis of their financials and watch for signs that credit risk is growing.
Another thing some companies are doing is thoroughly following how well their customers pay. If customers start paying less frequently or with longer delays, companies react. I think this is a very sound trend—following payment behavior closely. More and more companies are putting effort into this, often with a dedicated credit manager analyzing the situation.“
Q: Are there any technologies that you can think of that have evolved over the years for credit management purposes?
“There are many different technologies. One is having automated links to companies that provide credit information or insurance. There are also huge IT systems that calculate who you should give credit to and who you shouldn't. But many of these are big and are designed for multinationals with billions in turnover. For smaller companies, I don't think there's a really good technology solution that handles all of these things. I believe there's still a lot of manual work being done here.”
Did you know that CapAid’s ACE - Advanced Credit Evaluation, can help you eliminate 50% of your credit losses annually?
Interview profile
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.