Improving Credit Risk Management with Trade Payment Insights

This document is a case study detailing how a leading sustainable building materials and construction solutions business improved its credit risk management through the use of trade payment insights and analytics provided by Dun & Bradstreet. The client, a key supplier to the construction sector, faced challenges in making timely credit decisions due to the long-term implications of their supply contracts. By leveraging Dun & Bradstreet's data, the client achieved a significant reduction in bad debt and improved cash flow. The credit team utilized comparative analytics to benchmark performance against the market, focusing on metrics such as Days Sales Outstanding (DSO) and weighted average payment terms. The insights gained allowed for better decision-making and management reporting, ultimately leading to a decrease in accounts on stop and a reduction in average debt per account. The case study emphasizes the importance of data-driven decision-making in enhancing credit risk management during uncertain economic times.