Is 2014 the year of economic pragmatism?

The situation of companies is and will remain mixed in 2014. Each of them must take this reality into account and adapt its customer risk management accordingly.

The economic crisis is in place at the beginning of 2014. Keep our distance with the political speeches that leverage every micro-positive information to enhance their work with their audience. Business difficulties are indeed present. Failures are at the highest level and the number of firms experiencing fainting increases as their cash is driven by lack of funding and margins under pressure.

However, the situation is not catastrophic at all. Some sectors are growing, many companies work well and grow.

The unfavorable macro-economic environment is full of many different realities. If the media focus by pure masochism on social plans and liquidation of obsolete companies, do not forget the innovative companies that emerge thanks to technological advances still blazing or new ideas.

The reality of businesses is very mixed. It is the same for the credit risk. It is therefore necessary to manage credit risk on a case by case basis, buyer per buyer. It is very risky and uncertain to apply the same payment conditions to all its customers, whether restrictive or permissive they are. A specific formula must be applied to each business relationship to make the sale while securing the risk of payment default and improving cash of its company.

Pragmatism and business success are based on consideration of the diverse economic reality and the establishment of the principles of Credit Management in quote to cash process. Professionalize the management of accounts receivable from commercial negotiation until invoices payment is a key factor of success today.


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