ED 47: January-February 2013

knowledgeable in the market’s legal
system where your buyer operates in.
They can also save your staff the hassle
from personally calling the buyer.
Finally, it is advisable for SMEs to get credit
insurance. In spite of the bad economy
it is still important to offer trade credit to
some customers, in order to keep long
time business relationships from going
awry. The availability of trade credit to
customers is needed by many SMEs
to keep their businesses going. From a
macroeconomic standpoint, it prevents
the economy from slowing down.
In case the customer does default, credit
insurance gives the supplier the protection
it badly needs. It ensures that monies
owed become monies paid. Choose a
reputable credit insurance provider who
designs credit insurance according to
your business needs, and can cover
not just the risk of your customer being
unwilling or unable to pay but also a wide
range of other risks that can prevent
payment – including natural disaster and
war.
conclusion
In order to avoid an insolvent environment
in the face of a weak economy and rising
business costs, companies should
consider the above credit management
tools to give them the stability to plan
their business strategy, unhindered by the
risks of late or non-payment. If prepared
well, SME owners can sleep well at night.
Armed and ready, they can welcome
2013 wholeheartedly.
Michael Frigo
country Manager, Singapore
atradius
mo n E ysm a r t
Ja n | FE b 2013
En t r E p r E n E u r s’ Di g E s t
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