Third-party Receivables Management
Monitoring and reducing risk with proactive claims management
Looked at in isolation, receivables risk might appear negligible. But we all know that across various group companies doing business with each other and with third parties, it can easily get out of hand and you risk losing control and incurring losses. How do you get a handle on receivables risk? By monitoring subsidiary risk and business relationships.
Making receivables risk manageable
Gathering the information you need to assess third-party risk is simple with tm5. TPCREDIT assists with targeted monitoring of open positions and helps to assign optimized limits. This forms the framework for determining individual customer credit ratings, creating visibility with regard to the customer portfolio and allows for the evaluation and verification of group companies’ creditworthiness. This in turn provides treasury with the basis for determining credit margins and credit terms. You gain a complete overview of the receivables portfolio of each group company including any inherent risks posed by the conversion into cash flows. The central treasury sets the framework and all group companies use the tool to make informed decisions about payment terms, credit extensions and vendor relationships.
- Monitor each party’s risk for the duration of a receivable
- Calculate the risk in your receivables portfolio
- Track payment histories group-wide
- Define and manage risk limits on a centralized or decentralized basis
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