B2B credit management is increasingly becoming a key differentiator in financial strategies aimed at maintaining healthy and growing profit margins. A combination of theoretical knowledge, practical experience, technological expertise, and client relationship skills offers security and precision in decision-making.

However, just as effective credit management can guide a company toward success, poor execution can lead to financial issues.

In this article, we will discuss what credit management is and provide tips on how to successfully manage this business aspect.

What is Credit Management?

For years, it has been understood that companies do not operate in isolation. The operation of different companies follows a flow of supply relationships necessary for their functioning.

For example, an electronics manufacturer contracts services such as machinery maintenance, employee training, facility cleaning, and transportation for its products, among others.

This manufacturing unit also needs suppliers for its inputs, such as electronic components for phones, TVs, and other devices, as well as metals, plastics, and glass for equipment casing, and cardboard and foam for packaging, among other items needed to deliver products to the end consumer.

When contracting these inputs and services, the electronics manufacturer engages in what is known as a business-to-business (B2B) relationship. This model of interaction is referred to as B2B.

When negotiating with suppliers, the electronics manufacturer may opt to pay for contracted services at a later date, suggesting payment at a more favorable time for its cash flow. This is known as a credit purchase.

Credit management in B2B is a common reality that must be well-managed to avoid becoming a liability for the supplier. Credit management involves evaluating a client’s ability to pay.

Suppliers must continually seek information to assess the financial health of clients and their ability to make payments on time.

When entering into a contract with a payment term, the supplier must understand the credit risk—i.e., the risk of not receiving payment for the product or service offered—from that client.

As we can see, credit management is crucial for the organization and financial stability of B2B suppliers of goods and services.

This is an extremely relevant point because it helps define credit rules: the maximum credit limit, payment deadlines, sanctions or penalties for late payments, and other terms.

What is Assertive Credit Management?

Assertive credit management encompasses the set of precautions and the overall perspective a company needs when offering its products and services on credit. The goal of credit management is to create a win-win relationship for all parties involved.

Here are 3 important tips for companies aiming to implement assertive credit management:

1) Evaluate Credit Risk

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Financial solidity is one of the greatest qualities a company can have, essential for security and operational continuity. If you offer credit to another company, ensure there is evidence that your client can pay within the agreed timeframe. This requires a credit risk assessment.

This can be done in various ways, such as requesting documents and statements from the client that help your company assess the financial health of the business relationship.

Some of these documents include banking and financial information, credit scores, liquidity and debt ratios, credit profiles, and any client restrictions.

However, it is most advisable to conduct this analysis using an automated system that performs credit assessments by cross-referencing various financial data from institutions worldwide.

2) Record Risk Situations or Clients

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Over time, you may encounter clients at different stages of business and financial management maturity, leading to varying levels of credit risk. Therefore, document negative credit and collection situations, including delays, information denials, or any conduct that has caused problems or losses to your company.

Share this information internally and create systems to make it accessible for easy consultation, helping to avoid potentially immature clients with higher credit risk.

3) Maintain a Routine of Evaluations

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The credit management team should continuously evaluate clients, their metrics, and their behavior. Regular re-evaluations and analyses of clients are necessary to identify potential changes that could lead to payment issues.

In addition to automated credit analysis tools, it can be useful to develop your own credit scoring or credit store. Adopting such tools internally can make assessments more personalized, enhancing the context and providing more accurate readings.

These tips serve as a guide for companies and departments aiming for increasingly assertive credit management—combining technology with strategic information management in decision-making.

Trends align with what CIAL Dun & Bradstreet believes: finance and credit professionals are under pressure to manage risks and drive profitable growth, while technology enhances automated data collection and management.

Through our financial solutions, automated monitoring based on personalized standards is possible.

CIAL 360 Credit, a SaaS platform, provides comprehensive analysis as it is fed with the most recent, extensive, and accurate commercial data available in the market. This tool enables more reliable credit decisions, evaluates clients and partners based on data, and increases company scalability through higher credit allocations without increasing risk.

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