Credit Management December 2019

ADVERTORIAL
SLOW AHEAD
A members’ roundtable at Dun & Bradstreet
shared best practice ideas in managing risk in
a post-Brexit world.
AUTHOR – Chris Garner
MANAGING credit,
both within the UK
and across borders
in such an uncertain
period is ‘testing the
mettle’ of many credit
professionals. There are so many unknowns
that data and analytics can become key
tools to help navigate the chaos.
Sue Chapple FCICM, Director of
Strategic Relationships at CICM, chaired
the meeting and asked delegates what
impact the changing Brexit deadline and
political environment is having on their
business and outlook going forward. The
conclusion was that whatever happens,
and while there may be some short-term
turmoil, the medium- and long-term
outlook is hopeful. Many industry experts
and international businesses comment
that the UK is still viewed as a ‘safe pair of
hands’.
PREPARING FOR BREXIT
While policy documents and position
statements around Brexit are helpful, the
group discussed whether it’s possible to
mitigate risk in every scenario. Several
businesses explained how they are
receiving information requests from
suppliers and customers who want to
know more about their Brexit planning to
give them confidence that there will be no
disruption to business relationships. These
businesses also want to know how their
partners will deal with extreme scenarios
like a doubling or halving of demand.
Another topic raised was the willingness
of overseas businesses to trade with the
UK once we exit the EU, and their level of
nervousness. Dun & Bradstreet and other
guests reported seeing an increased need
from their overseas customers for general
advice on aspects such as payment terms.
The changing nature of consumer
demand and how this affects business was
also a key topic of debate. Delegates shared
that they are seeing a noticeable change
in the demand for instant credit decisions
and rising expectations from their customer
base. This trend increases the need
for efficient due diligence within
accelerated timescales. Having accurate
and real-time data via Application Program
Interfaces (APIs) integrated directly into a
company’s own operating systems can be
crucial to effective delivery.
PROMPT PAYMENTS
In discussing the increasing trend
in insolvencies evidenced in Dun &
Bradstreet’s Q3 UK Industry Report, the
conversation turned to the question of
payment within terms and the Prompt
Payment Code. The Chair noted the
increased focus on this area and the impact
that measuring payment behaviour via the
Code is having on those who have signed
up.
The encouraging signs of action
following the sharing of the measurements
in partnership with the former Small
Business Commissioner (what gets
measured, gets done) is a positive long-term
indicator for economic progress. However,
Sue added that CICM receives feedback
from members that slow payments are
often due to bureaucratic processes
creating delays in paying suppliers. She also
added that this is, however, further delayed
by some suppliers who have equally bad
invoicing practices.
Business is about dealing with
uncertainty and mitigating the risks that
are necessary to achieve profitable growth.
We may think these times are uncertain,
but fundamentally the core markets
remain, and only cyclical variances and
technological progress serves to challenge
our established practices. Many will
remember getting through the Y2K bug,
GDPR and probably even several recessions.
It is too easy to become focussed on the
negatives and miss the positives and the
opportunities. If credit management was
easy then anybody could do it, therefore
it is an industry staffed by diligent,
focussed and of course CICM connected
professionals.
Chris Garner, Integrated Marketing Manager
for Finance Solutions at Dun & Bradstreet.
Sue Chapple FCICM
Director of Strategic Relationships
CICM
The Recognised Standard / www.cicm.com / December 2019 / PAGE 22