Tips for Managing Credit & Risk Trading​

Cash flow is one of the most important financial metrics for any business. Essentially, cash flow is the amount of money that is coming in and going out of a business over a certain period of time, such as a month, a quarter, or a year. This is important because businesses need to have a positive cash flow to operate effectively and remain solvent.

Business risk refers to the potential for loss or negative impact on a company's operations, financial health, or reputation due to internal or external factors. It is an inevitable part of doing business and can arise from a variety of sources, including changes in market conditions, supply chain disruptions, legal or regulatory changes, financial instability, and more.

Cash flow analysis is a financial management process that involves examining a company's cash inflows and outflows to assess its liquidity, financial health, and ability to meet financial obligations. This analysis helps companies identify areas where they can improve cash flow and take proactive measures to manage their finances effectively.

Have you ever had to manage a customer's overdue payment and been unsure how to handle the delicate situation to make sure you collect your late payment and still maintain a good relationship with your customers?   Even the best customers and businesses can become late payers. When this happens, it can put a strain on your organization, which can damage the entire business relationship.

Almost every country in the world produces agricultural goods. Each country’s agri-food sector is shaped by factors ranging from regional specificities and culture to climate, geography, and international relations.   Food is a basic necessity, and as such it’s easy to assume that the agrifood sector is safe from certain risks. However, this is not the case, with actors across the supply chain vulnerable to various risks and stressors, from consumers’ purchasing power and inflation to product recalls and natural disasters. Given the increasingly volatile business and environmental landscape, players must navigate new challenges and manage their credit risks carefully.     As Industry Manager at Allianz Trade in Italy, I’ve seen various trends impact credit risk in the agri-food sector in recent years, and creative ways in which companies adapt in order to manage these. Let’s explore how lessons learned from the Italian agri-food industry could help businesses around the world.

Buy Now, Pay Later: it’s a consumer financing model that has become indispensable to the success of B2C websites. By offering consumers the prospect of delaying their payments – at no extra cost to them – retailers can dramatically boost e-commerce conversion rates and keep customers coming back for more (as long as customers pass an instant credit check, of course).   It’s a phenomenon that’s now gaining momentum in the world of business-to-business e-commerce, where e-merchants still typically require customers to pay in full with a card at checkout rather than via the kinds of deferred payment methods – such as net 30 or 60 days – that are the hallmarks of offline B2B trade.   So what kind of capabilities and business advantages give B2B e-merchants the confidence to grasp the BNPL opportunity? Here are four compelling features that are driving BNPL adoption:

Trade risk refers to the potential for financial loss or negative consequences arising from fluctuations in the value of goods or services traded between different countries. Read the article and know how to manage trade risk! 

By offering BNPL financing to customers, e-merchants can increase e-commerce conversion rates, foster loyalty and grow sales – without putting cash flow at risk. Discover how

The global B2B e-commerce market is six times larger than that of B2C. It is projected to grow at 17% CAGR until 2027 with market size reaching EUR21 trillion. While 95% of B2B buyers prefer paying on credit terms just as they are able to when buying offline, however, only less than 10% of e-merchants offer such option. As research shows that 29% of buyers opt to abandon their shopping carts if their preferred payment option is not available, e-merchants are hurrying to bridge this gap.