Stay ahead of the curve with access to the right data
Markets and industries are changing faster than ever before. Few places is this more evident than in the Industrial Supply industry. Everything from advanced AI technologies to escalating trade policies are creating opportunity and risk across the supply chain. This means companies that extend credit to businesses within this dynamic industry must find more timely and accurate business information to help them expect the unexpected and predict future account performance. Here we’ll share how the right data can help.
For clues about financial risk, monitor industry-specific indicators. It’s important to know what’s happening within an industry in order to better protect against high-risk trends. For example, Cortera Industry Monitors offer an at-a-glance view of key performance indicators within multiple industries, including Industrial Supply. The Industrial Supply view shows only 10 companies within the industry filed bankruptcy in September of 2018; however, that number skyrocketed to 40 companies a year later, in September 2019, and has been consistently high for several months. While a trend toward increased bankruptcies could be indicative of many issues, it could also be an industry-level flag that says, “proceed with caution.”
Simply having the ability to monitor this trend and others like it can help Industrial Supply companies recognize internal risk earlier and take proactive steps to better protect their business. Similarly, those companies extending credit to Industrial Supply businesses can monitor these indicators and use the insights to make timely adjustments to their risk models and scores.
Use data-fueled insights to optimize performance and “do more with less.” As conditions within the Industrial Supply sector continuously shift, business-critical expenses will fluctuate, potentially impacting the financial trajectory of these businesses. To proactively buffer against spikes in payment delinquencies, you can use industry-level data to drive process improvements.
For example, Cortera data for Industrial Supply companies shows improving risk scores, up 50 points from August 2019 to September 2019. This suggests opportunity for further improvement. To capitalize on the momentum, companies can offer options for submitting faster payments—via an automated process or other process improvement. This can help streamline operations and improve risk scores, leading to more financially favorable credit terms for individual companies and the broader industry.
Better understand your customers, and their industry. While you may know how quickly a company pays your bill, do you know how quickly they pay other providers and suppliers? Do you know how much the industry as a whole spends each month, and if that spend dips or spikes in certain months? Do companies in some states consistently pay faster than those in other states?
Having access to these hyper-current, month-over-month insights can help you better understand the ebb and flow of the Industrial Supply industry and put individual company performance in context with industry behaviors. This is particularly important when making credit decisions on small businesses. It’s a detailed, “big picture” view that can help you securely serve a wider audience of customers within this industry, without taking on added risk.
At Cortera, we believe that unique, data-driven insights in the form of predictive financial health indicators and relevant industry trends should be accessible to companies of all sizes. It’s why we created our Industry Monitors, built from our unprecedented commercial credit network, and made them available for free to anyone who’s interested. It’s just one of the many ways we use our exclusive spend data on private companies to fuel more informed commercial credit decisions.