The recognised standard
in credit management
Established in 1939, the Institute of Credit Management is Europe's largest association for the credit management profession

Corporate Partner Sidetrade reveals the secrets of top-performing businesses

Press Release – 17 June 2014

Sidetrade has published its third edition of Working Capital Overview, covering Europe’s commercial credit market. How do your policies on managing payment delay, credit risk and financial customer relationship measure up?

Achieving a competitive edge is crucial to any business survival; effective customer payment terms are a constant and crucial factor. Management of commercial credit; the delay between delivery of goods or services and customer payment, is an essential element in B2B sales. Centring on terms of payment, it encompasses economic, financial and sales issues. Supplier credit represents nearly 36% of GDP in Italy, 30% in France and 14% in Germany.

Philip King, Chief Executive of the ICM, says that there is an inextricable link between sales and commercial credit: ‘Given its close relationship with Sales, commercial credit is at the very heart of business development,” he says, “and must be managed in coordination with a company’s wider development strategy. Today, every department, including Collections, must contribute proactively in order to deliver excellence in customer relationship management.’ Managing accounts receivable provides performance leverage with immediate consequences for business growth and profitability as well as customer satisfaction.

Sidetrade has a unique insight in collections performance research. Last year companies subscribing to Sidetrade Network’s service managed 34 million invoices – creating an equal amount of opportunities to observe payment behaviour. These transaction flows represented 90 billion Euros across Europe, United States, Canada, Mexico, Singapore, Thailand and Indonesia. This edition of the Working Capital Overview analyses the performance of businesses that have chosen to manage the credit advanced to their customers proactively, gaining flexibility and freeing up cash. In a context where cash is king, the analysis highlights observed best practices and suggests the most productive areas for improvement. Axelle de Faÿ points out: ‘Businesses can establish an immediately applicable action plan. This is an outstanding opportunity to outpace the competition.’ The results are impressive: Overview companies perform above the market average. ‘By combining professional expertise with technological innovation, businesses optimise customer relations and thus profitability,’

The ever-increasing speed of technological change means businesses must stay abreast of the latest innovations. As Axelle de Faÿ concludes: ‘Professions change, new technologies create new ways of working. Moving to the Cloud provides leverage for Finance to succeed in shaping cash culture strategy across the organisation. It provides key performance indicators that guide and support the business. Organisations become agile and create value.’

Please click here to download Sidetrade 2014 Overview.

SIDETRADE CONTACT

Christelle Dhrif   -   +44 203 608 9850   -   nodebt@sidetrade.com

ABOUT SIDETRADE (www.sidetrade.co.uk)

Software provider listed (NYSE Euronext, FR0010202606, ALBFR.PA), Sidetrade offers companies the opportunity to digitise the management of their financial relationships with customers. Sidetrade’s market-leading solutions, complementary to ERPs, meet the challenges of securing what is often a company’s largest asset, its accounts receivable, by reducing late payments and controlling customer risk. With sales in 65 countries, the Group enables 69,000 users from companies of all sizes and all sectors to collaborate via its Cloud solution and accelerate cash-flow generation.