Futureproof your credit management with the 'human-first' strategy.

Challenging times

Germany facing a 2-year in a row recession for the first time since 1990 already illustrates the economic challenging times we are in. However Belgium systematically outperformed the European average growth level, Belgian companies are also currently in distress. Profitability and liquidity indicators are showing a downwards trend.

Margins under pressure

The challenging times are not only driven by the economic downturn but also by the current geopolitical landscape. Research shows a significant impact of geopolitical challenges on companies’ EBITDA. Furthermore, climate change is considered one of the highest risks of the coming years. To support the necessary green transition, investments of 3 to 5% of companies’ turnover will be required. This means additional pressure on margins.

In need for good news? Putting your credit management on top and stepping into digital transformation are tools to improve your margins.

Credit management on top

Granting payment terms to customers comes along with a cost. Late payments are impacting your working capital needs. In Belgium invoices are paid with average delay of 19 days beyond terms. Next to overdue invoices you might also have invoices that remain unpaid due to insolvencies. The additional sales needed to compensate these losses are significant and especially difficult to realize in times of economic slowdown. Therefore, credit management is an essential tool for sustainable margins.

Digital transformation

In credit management the digital transformation allows for a more predictive credit management both in collections as well as in credit risk management. Before, credit management software functionality was more static and steering: the initially defined collection strategy filled the worklist of the credit collector. Now we see a transition towards a human and machine stronger together approach: input from the collector is considered in dynamic collections strategies.

With technology executing repetitive tasks, more time is created to benefit from human working capital such as legal expertise. A deep dive in your general terms and conditions, for example on the applicable laws and jurisdiction, can increase your collections performance and decrease collections costs. Furthermore, digital transformation supports retention of competent and intelligent employees in the organization.

With the customer @ the table

In digital transformation project cross-functional teams are assembled. For e-invoicing projects (Peppol requirement as from 01/01/2026 in Belgium) IT, tax, finance, etc. departments are involved to support the technical and functional implementation. However we see that despite the internal preparation, project methodologies, etc. issues are only detected after sending out the first electronic invoices. How is that possible? Because, there was one party not invited @ our digital transformation table: the customer. With the focus on digital excellence and efficiencies, our first and - in business- most important human was forgotten: the customer and his needs and requests. So never to forget that credit management is an important trip in the customer journey and contributes to customer satisfaction.

Human-first strategy

Digital transformation requires change management and a people perspective. Who else to invite to the table in our human-first approach? Board members, credit management team, sales, internal sales, etc. To identify the automation opportunity pipeline, digital awareness of the board is key. A credit management team with a collaborative attitude in all their contacts and communication both with internal and external customers bring value to your organization. All colleagues in a client facing role can contribute to a successful credit management. By doing so, everyone contributes to improving the profitability and liquidity position of the organization.

You can face the challenges ahead in full confidence by applying a human-first strategy to futureproof your credit management.