In today’s unpredictable world the one thing you can control is your ability to assess risks and predict potential issues that may affect the health of your business portfolio.
Too many owners are failing to check the health of their business portfolio, resulting in lost profit and a higher risk of insolvency.
Regular business health checks are imperative to reduce risks and feel confident that your business is working with other trustworthy businesses and suppliers.
We advise the businesses we work with to undertake health checks to reduce costs associated with inaccurate and unpaid invoices, improve the efficiency of activities such as audits and compliance checks, and to prioritise portfolio risks as your customer base grows.
We believe there are three key benefits to checking the health of your portfolio:
1 Gain an insight into the overall health of your portfolio
Distribution of ratings over number of buyers
Distribution of ratings over exposure.
2 Manage risk within your portfolio
Closely monitor buyers with a negative change
Track incoming quality by comparing new buyers with existing buyers
Take additional security measures on new buyers in case of a bad reputation in paying invoices
Use ratings as a second opinion to confirm your own trading experience.
3 Compare different segments or countries in your portfolio
Compare buyers within and across exposure bands
Analyse buyers within the same rating band.
In today’s unpredictable world, you never know what might happen that affects your business. The one thing you can control is your ability to assess risks and predict potential issues that may arise. I urge business owners to implement regular health checks to keep track of their portfolio, to manage the risk of new buyers and to understand external issues that may become a problem.