Coface launches new tool that helps companies correctly assess the financial situation of business partners

In the current situation marked by numerous economic challenges, Coface Romania supports companies by launching Diagnostic, a new product on the business information market in Romania. The new product develops a risk profile of a subject company in a widely addressable language, a release shows.

Diagnostic is useful in assessing a company, its partners, be it suppliers, customers or even competitors. The product helps to gain a thorough understanding of the financial health and the competitiveness of the analyzed company, and offers arguments for the recommended credit limit and the subject company risk.

“In line with our tradition of constantly innovating and offering integrated risk management services, we offer companies a new product that contributes to gaining an in-depth knowledge of business partners. Aimed at assessing companies’ strengths and weaknesses in relation to market realities, Diagnostic offers a complete, 360-degree view of the company’s ecosystem. Moreover, this is done in an accessible language suitable even for non-experts, which contributes to increasing the level of market knowledge and education. This product completes our offer of products and services in a period marked by numerous challenges for companies, which we continue to support through adapted solutions”, declared Eugen Anicescu, Country Manager, Coface Romania.

Over the last 10 years, the degree of interconnectivity of Romanian companies has increased exponentially, as shown by both the dynamics of supplier credit and the evolution of the average period trade receivables collection. Thus, the supplier credit has become about 3.5 times higher than the amount of bank credit in the last decade, and the average collection period has almost doubled, from 60 days in 2007 to 115 days in 2019. In this context, doubled by the occurrence of unforeseen situations, such as the COVID-19 pandemic, the knowledge of business partners, their financial soundness and payment behavior has become more important than ever.

“After 15 years of experience in credit risk management, the most common question received by Coface from all those who check their business partners is “Why?”. People want to understand what is behind the analysis of a company’s creditworthiness, why is it recommended to limit the exposure to a certain level and why that company is placed in a certain risk category. To answer this question, Coface offers clients a unique product in Romania: DIAGNOSTIC”, added Iancu Guda, Services Director, Coface Romania.