Credit Manager 2017 new rules?

As explained in our previous newsletters the supplier credit is a big issue in France.

For this reason it’s important to have an in house or external credit manager for the management of your French Credit Risk. The way of acting of the Credit manager was for years made under well know rules.

He checked the solvency, surveyed the mean of payment of the debtors, he checked the in house flow( Payment and delivery terms, order, delivery note, invoice etc.) and had an eye on the credit limit starting if necessary debt collection measures. The Credit manager is often in conflict with the sales people more concerned with their turnover goals than with the payment problems.

In 2017 we are in France facing a lot of major evolutions :

– Tsunami in the political scene with the disappearing of the left and right party
– Decrease of the transparency in the business life due of the fact that most of the companies are not obliged any more to publish their balance sheet.
– New rules facilitating the building up of credit between suppliers and customers.
– Due of the development of Internet new start-ups are growing like mushrooms after the rain.
– Consumers modifying their way and habits of purchasing goods and services.

In 2017 a war between credit manager and sales people is impossible.

The customer has to be seen as a partner for the supplier this is the only possibility to have in the future reliable retail organizations. Sales and Credit management have to focus and find out retailers with potential. If the retailer is in trouble the supplier has to support him by example in building up a credit, this kind of prevention is more successful than repression.

This new rules are not applicable for one shot customers.