Tips for Managing Credit & Risk Trading​

​Does your business need credit control? Know our management, solutions, and services! A robust credit control procedure is essential for every business owner, whether large or small: effective credit control will get you paid faster, and that’s good for your business. What’s more, in promoting timely payments, effective credit control can help you to avoid expensive business debt collection proceedings or accumulating and writing off bad debts. But what is credit control and how to create a robust credit control system?

Recovering money that customers owe your company – known as business or commercial debt collection – is an unavoidable fact of business life. Doing it while maintaining customer relationships is the challenge. In this article, we review several business debt collection practices to help you manage your business risk.

Your business depends on receivables being paid at an agreed-upon time. However, if it becomes impossible to collect on those receivables, how are you going to deal with the bad debt that’s now on your books?

E-commerce has been growing steadily for the last few years, and has seen an explosion since the pandemic got in the way of face-to-face transactions. Customers now expect rapid online purchasing processes and delivery for all kinds of goods—from groceries to building materials. The businesses that are most likely to thrive in this environment are the ones who have a solid e-commerce solution in place.   Today’s B2B companies are also increasingly turning to e-commerce for its promise of broader reach and capacity to make lightning-speed transactions. But with these new online opportunities come new challenges. How do you safely extend credit to a new customer that you can’t even run a classic risk assessment on?   I often speak to clients who want to take advantage of the new opportunities presented by online trade, but that are mystified by how to navigate the added level of risk involved. While it is important to be aware of specific related risks, there are several solutions in place for businesses to safely explore e-commerce.

Recovering money that customers owe your company – known as business or commercial debt collection – is an unavoidable fact of business life. Doing it while maintaining customer relationships is the challenge. In this article, we review several business debt collection practices to help you manage your business risk.

A letter of credit acts as a financial backstop for both your business and your customer, the letter of credit meaning that payments will be met. But it is not a panacea: there are advantages and disadvantages of a letter of credit, and there are other options – such as trade credit insurance – which could be better suited to your business.

Financial risk—the possibility of losing money on an investment or business venture—is an inherent part of commerce. From unpredictable market shifts to the potential for customer non-payment, these risks can impact a company's stability and operations.   While some risks can lead to growth, uncontrolled financial risks can result in significant losses. Effective financial risk management is the continuous process of identifying potential risks, assessing their impact, and implementing strategies to control them. This guide provides a framework to help your business navigate financial risk with confidence.

As a small-and-medium-sized enterprise (SME) business owner in Hong Kong, securing additional financing at some point is likely inevitable. Whether to meet financial obligations, expand your operations, or capitalize on business opportunities, having access to the right funding is crucial. While Allianz Trade does not provide direct SME loan services, we are committed to offering insights and advice to help your business thrive.

In Hong Kong, there are various SME financing and loan options available to support business growth, including large personal loans, collateral-free SME loans from banks, and government-subsidized schemes. Each option comes with its unique advantages and limitations, such as application thresholds, interest rates, and fund usage restrictions. If you're considering expanding your business or need significant capital, it's essential to understand your business needs and the purpose of the loan. Here’s a comprehensive guide to help you choose the most suitable SME financing option for your company.