2 Nov 2021 - Credit Consulting Audit
FOR OPTIMAL MANAGEMENT OF THE COMMERCIAL CREDIT PROCESS
FROM ITS BIRTH TO ITS COLLECTION.
When faced with an unpaid debt, have you ever wondered if it was avoidable?
You noticed in time or rather too late that the debtor was not solvenible?
Have you taken care of or are concerned about reviewing the credit granting processes, on a periodic basis?
We intend to provide optimal answers and solutions to these and other critical issues in credit management with a view to improving the credit process which is always possible and above all desirable..
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Starting from the statistical data, according to which over 70% of default of companies, derives from imprudent and unprofessional management of the unpaid debts of its customer portfolio and from the objective circumstance that a significant quantity of unpaid debts incontrovertibly and negatively affects the company's ability to generate and increase its cash flow, the need arises, in a market where the “credit factor” it also constitutes a competitiveness tool, to equip oneself with a correct credit process which represents an important factor, indeed essential, to ensure business continuity and thus avoid unpleasant surprises.
In other words, prevention is better than cure.
The above is so important that the New Code of Business Crisis and Insolvency provides and regulates alert procedures in the awareness that the possibility of safeguarding the values of a company in difficulty (c.d. “viable but distressed”) are directly proportional to the timeliness of the remedial intervention. On the contrary, the delay in perceiving the signs of crisis causes that, in most cases, degenerate into real irreversible insolvency.
When the company relies on a provider, internal or external, for managing the business (judicial and extrajudicial) of your credit collections, then we need to ask ourselves if something has gone wrong in the prevention and management of risks inherent to trade credit.
In other words, it is necessary to verify whether the management of one's commercial credit has taken place in a professional manner or not, i.e. whether it is careless or instead attentive and diligent., in the knowledge that, always, the management of this corporate aspect can always be improved.
Given these premises it becomes fundamental, for an economic entity, check yours performances, through the audit activity that SPA s.r.l. offer, this in the end, to provide an effective and reliable tool to support the organization or the client company that, in such a way, will be able to act by improving their performance, its cash flow as part of a more careful and diligent credit process and, in a word, more professional.
The audit consists of the systematic verification and analysis of credit management processes and aims to make them high-performance with a view to continuous improvement in compliance with the provisions of the UNI/PdR/44 practice.
UNI/PdR 44 practice:2018 is a document published by UNI (Italian Standardization Body), a fine 2018, with the purpose to prevent and manage the risks inherent to commercial credit, certifying its processes in such a way that they are recognized and validated by an impartial third party that guarantees their compliance.
The final objective is to provide clarity of the credit management process to all stakeholders interested companies.
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Ultimately, competition between companies is exercised not only at the time of sales and therefore in the management of their own core business, but also at the time of debt collection.
It is important to carefully monitor existing credit customers and ensure payment within the established timeframes by having a Credit Policy, resorting in cases where it is then necessary for the judicial recovery of one's outstanding debts.
At S.P.A. s.r.l. collaborates with professionals who are able to support companies for optimal management of their trade credits.
The consultancy is carried out at 360 degrees and therefore the customer has the possibility, with a single interlocutor, to acquire the procedures for optimal management, its own commercial credit process from its inception or from its "physiological" phase up to that, possible, "pathological" relating to the forced recovery carried out through affiliated law firms.