Trade Exchange Prgram unique instrument for credit risks analysis, assessment of client’s portfolio and nonpayment control.
Within the frame of Trade Exchange Program the companies anonymously exchange information concerning their contractors and, thus, have the opportunity to monitor if the same client pays the bills of other companies on time.
The system makes it possible to respond promptly to the deterioration of the payment discipline of the partners, to detect the most vulnerable segments in the client’s portfolio, to effectively manage credit policy.
Paydex, which helps to assess the risk of payment delay, is assigned to each company with available payment data.
Main capabilities of the system:
· Systematic monitoring of payments, while giving the general idea of financial inflows from contractors, provides additional mechanisms of income control;
· The system helps to allocate the riskiest segments of the client’s portfolio, which gives the opportunity to better manage credit limits and react to any changes in clients’ financial solvency;
· You may single out the most stable and reliable payers and place your stakes on them while developing your business.
Global experience of using Trade Exchange Program proved its efficiency in credit risks reduction, liquidation of past-due indebtedness, improvement of payment discipline and setting out new directions for business development.