km Entrepreneur Day 2012

As the host of the event, km credit consulting gmbh invited guests to the km Entrepreneur Day at Gut Mydlinghoven near Düsseldorf on May 8, 2012. The event was initiated in order to discuss current topics relevant to the credit management industry with interested business partners.

The agenda of the km Entrepreneur Day including the following three topics:

• Bankruptcy proceedings: latest news from law and practice
• Challenges and opportunities in credit management
  – efficient processes for your business
• Credit management case study

As the guest speakers, we were able to win over Dr. Wencke Mull, Director of Risk Service at Atradius Credit Insurance NV and Dr. Christian Wolf from the Görg law offices as well as Dr. Michael Sauter, Managing Director of Guardean GmbH. Dr. Mull and Dr. Wolf spoke on the topic of “Bankruptcy proceedings: latest news from law and practice.” Dr. Sauter spoke on the subject of “Challenges and opportunities in credit management – efficient processes for your business.”

Sven Coels introduces the km Benchmark Study

Sven Coels, our Senior Credit Consultant, presented our audience with the most important results from the benchmark study “Success factors in credit management.” The study was carried out by km credit consulting and internationally operating corporations.

In presenting the results, Mr. Coels generally zeroed in on the insight that, by definition, “the right” kind of credit management cannot exist. In fact, the orientation is subject to various influence factors, such as market situations and market strategies, the individual structural organization and the position of the company in the respective market, just to name a few of the parameters. The summarized empirical values created a lively discussion amongst the attendees in order to get closer to what distinguishes successful credit management in corporations at an industry and international level.

The study’s core results showed that in the participating companies different levels of development in credit management were observed. Three development steps can be recognized in detail:

• Administration (standard accounts receivable bookkeeping)
• Monitoring (regulating function)
• Planning and responsibility (credit analyst)

Especially the changes within the scope and in the aftermath of the global financial crisis have triggered a clear trend within the companies to actively approach the professionalization and, in turn, the further development of credit management activities.

Furthermore, Mr. Coels described in how far the study had highlighted the success factors in credit management from the viewpoint of the queried companies and went on to describe this. In terms of km credit consulting, the following success factors are decisive:

• Top company management should be a “sponsor” of the credit management function
• Autonomy of the credit management organization in its decision-making
• Integration into the overall sales process (interaction with sales organization)
• Efficiency of the credit management processes (effort – use)
• Development, implementation, and regular updating of credit guidelines
• Development of internal scoring systems
• Credit management software creates an overview and provides transparency
• Further development of the credit manager job specifications
• Communicate successes clearly, precisely and positively
• Further development of existing insurance structures

Lectures by Dr. Mull and Dr. Wolf

On the basis of current bankruptcy proceedings, Dr. Mull and Dr. Wolf presented the effects of the new bankruptcy code, which has been in effect since March 1, 2012. In doing so, they triggered an animated exchange of information and a proactive discussion amongst the participants. One area of focus was the function of the creditors’ board as well as their rights and obligations.

A brief overview of the most important points:

Changes to the InsO (bankruptcy code) through the ESUG (simplification of corporate reorganizations) and its effects

• Strengthening of the creditor position during the selection of the bankruptcy administrator
• Introduction of a so-called creditor protection process
• Simplification of the access for independent administration
• Expansion and streamlining of the bankruptcy process

Special cases in day-to-day business

• Course of action in case of late or slow payments by the debtor
• Bankruptcy proceedings: grounds, indicators, process
• The creditor committee
• Supplier rights during bankruptcy proceedings
• Bankruptcy appeal and compensation during the bankruptcy