Managing trade receivables has become an increasingly intricate task for finance directors and credit managers. With multiplying risks, growing payment delays, and rising demands for effective digital tools, the landscape is more challenging than ever. So, what kind of leader will you be in 2025? Explore these five key insights to stay ahead.
Facing the complexities of a poly-crisis world
Businesses today operate in an environment marked by multifaceted risks. From geopolitical instability to evolving economic pressures, the role of CFOs and credit managers has never been more critical—or more demanding. Despite existing tools and frameworks, many companies face gaps in financial security due to disconnected systems, unreliable data, and emerging threats.
To help you take control of commercial risks, Coface presents a practical checklist for navigating 2025's challenges.
1. Are you factoring in geopolitical risks?
Geopolitical risks have surged since 2020, reshaping the global trade landscape. With more than 70 countries preparing for national elections in 2024, geopolitical instability has reached unprecedented levels. This is reflected in the record levels reached by Coface's political and social risk index.
Events such as diplomatic tensions, regulatory uncertainty, and economic sanctions can disrupt supply chains or halt financial transactions overnight. Protect your business by anticipating these risks early. Trade credit insurance is a vital safeguard, not only for direct trade disruptions but also for the knock-on effects that political instability may have on your partners.
2. Do you account for natural disasters in risk planning?
Environmental risks have become a priority for finance teams. With disasters like Cyclone Chido and severe floods in Spain, climate-related events inflicted nearly €294 billion in damages globally in 2024—a figure expected to rise.
While predicting disasters remains a challenge, assessing a country’s vulnerability to climatic events is critical. Coface’s global network and monitoring tools can equip you with the insights needed to prepare for disruptions and mitigate their impact.
3. How do you handle payment delays and insolvencies?
Late payments and insolvencies continue to rise, impacting businesses across industries. Addressing this requires more than just reactive measures. Coface solutions such as trade credit insurance, business information services, and debt collection are essential for maintaining cash flow and protecting against chain reactions triggered by unpaid invoices.
4. Are human resources adding to your risk?
In many companies, only a handful of employees manage the critical tools and processes related to customer risk. This dependence creates a vulnerability when key personnel leave or become unavailable, leading to operational and financial disruptions.
Implementing streamlined systems and training more team members in receivables management is vital to ensuring resilience.
5. What digital tools support your risk management?
In an era of increasing complexity, many finance teams are hindered by fragmented systems and a lack of integrated, real-time insights. By leveraging connectivity solutions, businesses can optimize decision-making and improve operational efficiency.
Coface APIs empower CFOs and credit managers to integrate our services directly into their workflows, enabling them to:
- Access accurate, real-time data.
- Automate processes and manage large portfolios effortlessly.
- Create customized tracking indicators to monitor risks effectively.
The opportunities for digital transformation are limitless and critical to thriving in today’s business environment.
Secure your business with Coface
From trade credit insurance to business information and debt collection, Coface offers comprehensive solutions to protect your company’s financial health. Contact our experts today to ensure you're ready for the challenges of tomorrow.
