Credit Manager Magazine 9/2021

49 CREDIT MANAGER MAGAZINE WRZESIEŃ / SEPTEMBER 2021 “According to the Atradius Economic Research, global merchandise trade has surpassed pre-pandemic levels, with the 12-month rolling average growing 3.5 percent y-o-y in May 2021.” “The ongoing easing of restrictions is leading to a gradual return of the economy to normality. In most countries, this will likely result in the withdrawal of fiscal support and a return to previous insolvency rules.” Atradius is one of the world’s largest providers of trade credit insurance and credit management services. The Atradius Group holds approximately 26 percent of the global trade credit insurance market. Our business is conducted in 160 offices located in more than 50 countries around the world. Atradius currently employs over 3,300 people, while generating revenues of over 2 billion euro. In ad- dition to credit insurance, we also of- fer international debt collection ser- vices through Atradius Collections. Atradius has been present in Poland since 2004, operating in the field of debt insurance for corporate clients and, through Atradius Collections, debt collection. of the pandemic did not occur in 2020. Al- though many companies struggled with pay- ment gridlocks, the number of corporate insolvencies declined in most markets – the global decline amounted to 14 percent and was particularly noticeable in Europe and Asia, and slightly less in North America. New government policies in response to the crisis, including fiscal support for companies as well as a change in the rules of bankruptcy pro- ceedings, were responsible for this decline. At the moment, we are forecasting a reversal of this situation and a 12 percent increase in global insolvencies by the end of the year. The ongoing easing of restrictions is leading to a gradual return of the economy to normality. In most countries, this will likely result in the withdrawal of fiscal support and a return to previous insolvency rules. With the excep- tion of Australia, Japan and Sweden, which still maintain very low levels of insolvencies, most markets will see an increase in corpo- rate insolvencies this year. Securing financial flows is key We have been observing an increase in trade credit-based transactions for quite some time now. According to the Payment Practices Ba- rometer, published by Atradius in November 2020, 40 percent of suppliers in Poland re- ported an increase in the total value of their B2B sales based on trade credit during the pandemic. Faced with an uncertain and volatile eco- nomic situation, companies are looking for additional security for their receivables. In recent months, many have opted to use an insurer, recognizing that they will not be able to manage their receivables without the pro- fessional support. According to the Payment Practices Barometer, 49 percent of the sur- veyed businesses from Poland have requested trade credit insurance. The ongoing support of receivables’ insurer, protects companies from the risk associat- ed with the insolvency of contractors and prevents them from losing financial liquidi- ty, which is particularly important in times of crisis. Therefore, the increased efforts of companies to effectively collect money and secure their financial flows that we see is a good sign for the future. Effective protection of financial flows remains crucial to the re- covery of the global economy. Additionally, not without significance is the fact that the pandemic is testing companies, including ours, in terms of adapting to re- mote reality, automating processes, optimiz- ing service with new technologies and pre- paring staff. The only right approach in the current situation is to intensify activities that strengthen the quality of customer service at every stage of the process. This has long been the strategy of the Atradius Group, both in case of credit insurance and debt collection. Providing comprehensive support, we leave nothing for coincidence, offering knowledge and experience in all sectors of the economy. Our employees are at the heart of our suc- cess, enabling us to respond to the custom- ers’ individual needs, strengthen their credit management policies and support their busi- ness both locally and internationally. BUSINESS