Second Risk Seminar of COFACE in Bulgaria
Payment delays will be limited mostly with preventive measures
Preventive measures and approaches for systemic risk management is the key to reducing payment delays - amount and period of delay. This in turn, will lead to a reduction of intercompany indebtedness and also result in more stability in cash flows of companies, especially those in the commercial sector.
These were some of the main conclusions of the Second Risk Seminar held on 21 November and organized by Coface. The topic of the event was "Risk management and successful dealing with payment delays in commercial sector" and brought together nearly 100 representatives of trade and FMCG industry, entrepreneurs, financial experts and representatives of public institutions. The topic resulted actual enough, as recently an increase in delay periods this area was observed, which, as mentioned by the participants, can lead to serious negative consequences for their condition and liquidity. Media partners of the Second Risk Seminar were Manager and Regal magazines.
Moderated by journalist Mario Gavrilov, the seminar looked for answers to questions about how companies, especially commercial ones, to balance between non-payment control and maintain relationships with partners. This is especially true in long-term delays, which may suffer from momentary financial difficulties. At the beginning of the event, representatives of Coface Bulgaria - Milena Videnova, Country Manager and Borislav Todorov, Business Development Manager, presented an actual overview of risk and trends in trade payments in Bulgaria and Europe. Bulgaria remains one of the open economies in the region and the Eurozone provides perspectives for recovery of Bulgarian companies, which can be a useful way to manage the default risk. Best financial solutions for dealing with such situations should certainly be based on preventive measures, such as payment insurance. This provides both protection and higher liquidity and in addition - new business opportunities and flexibility - noted representatives of Coface Bulgaria.
The discussion involved authoritative business representatives who shared your analysis and practices. Miroslava Simova, Managing Director of Pernod Ricard Bulgaria, stressed that the credibility of the partners goes along with a better control and a key factor in dealing with payment delays is proactive and timely communication with debtors. The company can also apply bonuses for payments on time, which will have a positive impact if the partners have sufficient financial resources. Vasil Mirchev, Chairman of the Board of Directors of VM Finance Group, stressed the need for systematic management of risks and underlined that with only such an approach, the probability of dealing with them is growing.
Kiril Vatev, Manager of Tandem OOD, shared some useful practices of his company in credit management and add a very interesting trend – that the delayed and bad debts in certain cases merge. The main reason for this is the fact that they start the collection too late. Tsvetan Lazhanski, Chairman of the Board of Plastchim-T, focused on proactive customer service and especially wealthier ones. According to Executive Director of Pobeda AD, Mihail Choroleev, the state of the environment is extremely important to decide whether the payments to be insured.
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