Aon Launches ‘Trade Manager’ to Combat Bad Debts

Aon Trade Credit, the Group’s UK credit insurance broker unit, has launched “Aon Trade Manager,” which it describes as an “online diagnostic tool that identifies customers struggling to make payments and helps prevent bad debt. The tool will also help set credit limits using companies’ own customer trading experience, blended with up to date financial intelligence from ratings agencies.”

Aon explained that the system “takes an automated daily feed of all invoices, payments, credit notes and customer details directly from an organization’s accounting system. It then provides a range of diagnostic tools to assess how the credit risk is changing and in turn how to adjust credit limits or even stop trading with a particular customer.”

The tool enables it to perform the following services, said Aon:
— Early identification of customers demonstrating payment delinquency, including their subsidiaries;
— risk management support to complement existing credit insurance arrangements;
— a more detailed understanding of the impact of late payments on your balance sheet and how to reduce it;
— credit limit management for all businesses – large or small, in the UK or worldwide;
— sales growth by helping you to recognize less risky accounts with available credit lines, and
— reduced debt collection costs.

Stuart Lawson, head of Aon Trade Credit in the UK, added: “It’s not always easy to spot those customers who are experiencing financial difficulties and which may not be in business this time next year. It’s vital that companies of all sizes take steps to protect against credit risk by reinforcing the credit management function through monitoring customer payment performance on a daily basis coupled with up to date financial data. In addition to preventing bad debt, Aon Trade Manager is a proactive way of identifying reliable customers to help boost revenues and improve working capital.”

Source: Aon –