The consequences of the pandemic and macroeconomic risks such as inflation and rising energy costs mean that without government support measures, insolvency figures will increase by between 10% (in 2022) and 14% (in 2023), according to a publication by Allianz Trade.
The question immediately arises: how serious are up to 14% more insolvent customers or suppliers in each individual company for liquidity management and the stability of supply chains?
The continuous monitoring of business risks is one of the central processes in Finance & Controlling. The optimal combination of internal data such as payment experience and estimates from the sales departments with external data creates better planning security. An important element here is the early detection of insolvent customers and suppliers. Holistic insolvency monitoring is therefore a central component and helps to save costs and secure competitive advantages. Find out more about the 5 good reasons for insolvency monitoring:
1. save costs
The early detection of insolvent customers helps to stop deliveries in good time, adjust credit limits and payment terms and thus reduce defaults. Early contact with the insolvency administrator also makes it possible to realize security rights or avoid deliveries to the insolvency estate, which are ultimately only serviced proportionally.
2. Conserve resources
The automated and digital monitoring of business partners relieves the already scarce resources in risk management and IT. Insolvency events are accurately reported to the systems on a daily basis. The rapid identification of insolvent receivables avoids unnecessary dunning processes and the continuous monitoring of changes in the insolvency proceedings ensures the timely registration of claims with the administrator. This significantly reduces manual processes.
3. secure supply chains
Monitoring suppliers for insolvency events on a daily basis helps companies to manage the risk of their production planning and processes. In the event of insolvency, companies can look for new suppliers at an early stage and thus maintain the supply chain.
Our partner: STP Business Information GmbH
The STP Group, based in Karlsruhe, has been successfully active in the software market for insolvency administrators and law firm management systems for more than 25 years. More than 90% of German insolvency proceedings are processed with STP software.
STP Business Information GmbH is the competence center for the collection and structuring of data as well as the precise provision of data in IT systems and processes. Companies from all sectors benefit from this expertise with the help of intelligent data services in their process automation. In addition to banks, energy suppliers and health insurance companies, STP Business Information's customers also include companies from industry and trade.
4. rapid response
Daily monitoring significantly increases the response time to insolvency events. A competitive advantage can be achieved by quickly searching for alternative suppliers. Deeply structured data and scheduling overviews enable immediate claim registration with the insolvency administrator.
5. GDPR compliance
In the monitoring process, STP Business Information only monitors the customer and supplier master data you have requested for insolvency events. This means that you always retain full control over your data and receive the relevant results in a structured form.
Our joint solution
As partners, the GUS Group and STP Business Information are creating a fast solution for times of increasing risk by integrating the Insolvency Monitor into the GUS-OS Suite. By automatically transferring relevant data to the monitoring system, you receive proactive information on the latest insolvency events relevant to you at all times. Your regional manager will be happy to advise you.
Author: Eric Neuheiser: Key Account Manager, STP Business Information GmbH, expert in the field of insolvency monitoring
