Coface launches Trade Credit Advisory, a product dedicated to improving the trade credit management process

Coface Romania supports companies with a unique product on the market, Trade Credit Advisory, which offers a full assessment of trade credit risk management processes. The launch of this product takes place in a context marked by structural changes in the economy. In this context, in-depth knowledge of a company's risk ecosystem, in parallel with the analysis of external evolutions, systemic risks, as well as key macro and microeconomic vectors becomes essential.

Trade Credit Advisory offers a complete perspective over a company’s situation:

• Unique on the business information market:the only product in Romania that proposes a complete evaluation of the trade credit risk management processes (prospecting, credit decision, monitoring and financing)
• Analysis of external ecosystem:analyzes the financial evolution of the most important interest groups (suppliers, competition, customers) for the beneficiary in a relevant macroeconomic context
• Client portfolio analysis:captures the evolution of risk in the client portfolio based on static and dynamic analysis
• SWOT Analysis:captures the strengths, weaknesses, opportunities and risks of the subject company in the analyzed competitive context
• Recommendations: includes recommendations for improving trade credit management processes and reducing related risks

"Trade Credit Advisory is Coface's response and contribution to the need of streamlining a company's profitable growth strategy and credit management in a context where external events, such as the current health crisis, determine the need for more in-depth knowledge of risks. This product brings together the expertise we have gained by analyzing and ensuring the business environment, and aims to bring a deep understanding of the environment, its own strengths and weaknesses related to it and propose custom solutions for each company. Strategic decisions need knowledge, and Trade Credit Advisory meets this need", declared Eugen Anicescu, Country Manager, Coface Romania.

Trade Credit Advisory is structured on three distinct levels of information that help the beneficiary gain a complete view of the business ecosystem culminating in a series of recommendations to improve trade credit and reduce the associated risks.

„The trade credit, materialized through commercial transactions with payment terms, has doubled in the last decade in Romania, both from the absolute perspective (the value of receivables in the balance) and from the perspective of the average payment term. In this context, the efficiency of the trade credit management process becomes essential for a company's solvency on all components involved: prospecting and selecting customers, initial financial analysis, credit limit decision and guarantee dosing, risk monitoring and trade credit financing. Coface meets the needs of companies in this direction through a unique solution in Romania: Trade Credit Advisory. The product offers a complete image of the business ecosystem for the beneficiary companies, a retroactive analysis of the client portfolio and recommendations for improving the trade credit management processes and reducing the related risks”, added Iancu Guda, Services Director, Coface Romania.