“We have not had to write off a single bankruptcy in the past year.”
Many companies and governments place digitisation at the top of their priority list. With the optimisation of processes, blockchain, IoT (Internet of Things), artificial intelligence and many other new technologies, they still have many steps forward to take.
Even before the corona crisis, companies had digitization high on the agenda. However, COVID-19 has forced them to implement this at a rapid pace to change the way we work forever. Homework has been (compulsory) introduced and will probably never disappear again. Data traffic increased rapidly. The demand for equipment, such as screens and keyboards, all kinds of digital applications, online security and cloud services also increased significantly.
The ICT sector can initially benefit from this situation. This way, the players can compensate for the drop in turnover and therefore somewhat limit the damage. According to expectations, growth will resume next year, and the industry will end above pre-crisis levels. If digital healthcare also continues and distance education makes a complete breakthrough, then the sector still has a good period ahead.
Yet, it is not all roses and moonshine. There may still be a relapse if clients experience difficulties (financially) due to the corona crisis. By thoroughly analysing the customer base and then by following up on customers briefly, companies can nevertheless predict where their portfolio is vulnerable. Thus, they can face the immediate consequences and look back to the future.
Distributors of hardware and software operate in a very competitive market and with small margins. They are very reliant on trade credits to conduct business. Otherwise, they do not have the required liquidity. They often sell material at cost price or even at a loss to achieve volume targets. Selling large quantities to new customers tends to be desperate and quite risky. Fraudsters are lurking. All the more so because computers and derivative materials can easily be resold. It makes sense that customers must be thoroughly checked before the transaction takes place. Profits may melt overnight if a delivery is not paid or if it concerns fraud.
Given the international reach of some organisations, a check of UBOs and testing against PEPs of sanctions lists is also not superfluous or a luxury. Especially companies with ties to US parent companies should be wary of ownership structures that extend into Iran or North Korea, for example.
Graydon's solutions help you make faster and more informed decisions, so you can minimise fraud, defaults and credit risks. In addition, customer due diligence solutions ensure that you can avoid reputational damage.
Graydon is uniquely positioned to recognise alarm signals. Long before the customer, this can be done with own resources. By training our customers and optimising their internal processes, they achieve a high level of fraud detection and prevention. Although in a sense positive for the customers who are now protected, fraudsters are now targeting other links in the network. The risk therefore remains that - if fraudsters are successful - other parties in the chain will fall victim and drag suppliers into their trap.