Improving Trade Credit Visibility and Cost Control at Eurotoll
Eurotoll is the leading European provider of subscription contracts for heavy goods vehicles using the infrastructure network and existing electronic toll systems on most European toll road networks. The negative effects of the recession in Europe led Eurotoll to revisit its trade credit risk management model. Working with Tinubu Square, the company implemented credit management processes that provide real-time visibility into trade credit exposure, reduced accounts in arrears and cost of credit, and optimised credit insurance premiums and coverage.
Eurotoll’s direct toll road network covers more than 30,000 kilometres of toll motorways, tunnels, and bridges and secure parking in France, Spain, Italy, Austria, Slovakia and Poland. The company also works with partners in 27 European countries for seamless services related to controlling toll costs for 10,000 customers, including 70% of the 25 largest European freight companies. In 2011, Eurotoll issued approximately four million invoices totaling more than €500m for tolls and its wide range of value-added services.
Deteriorating economic conditions were having a considerable impact on the transportation sector in Europe. Consequently, Eurotoll decided to revisit its trade credit risk management model. At the time, the company relied only on credit insurers and general financial information on customers, which did not provide the ability to track changes in customers’ financial position and credit worthiness in a timely manner.