Identify Risks Early: Benefits of Automated Credit & Compliance
3 Min. Read
Key Takeaways
- Global corporate insolvencies rose by 10 percent in 2024 and are 12 percent above the pre-crisis average (Allianz Trade 2025).
- Creditsafe covers over 430 million companies in more than 200 countries. 580 million reports were generated in 2024.
- KYC and AML compliance costs financial institutions worldwide an average of 72.9 million dollars annually (LexisNexis Risk 2024).
- Finance managers spend up to one workday on a single credit decision. Automation reduces this to minutes.
- Nearly half of all B2B revenues in Western Europe are affected by payment delays (Atradius 2024).
Export companies often face the challenge of obtaining accurate and comprehensive information about the financial situation of their customers, especially if they operate in different legal systems. Manual credit checks are not only time-consuming but also often provide limited insights into the actual risks and interconnections of a company. Automated systems for credit and compliance checks are the solution.
International business relationships are marked by increasing risks. The numbers speak for themselves: global corporate insolvencies rose by 10 percent in 2024 compared to the previous year and are 12 percent above the pre-crisis average from 2016 to 2019, according to Allianz Trade. In Germany, the increase was even 23 percent, and in the eurozone as a whole, 19 percent. A further increase of 6 percent is expected for 2025.
The risk of payment defaults by international business partners is therefore increasing. Nearly half of all B2B revenues in Western Europe are affected by payment delays, with bad debt losses remaining stable at 8 percent of all B2B sales. Payment terms have increased to an average of 52 days. Credit and finance managers of export-oriented companies face the task of systematically checking the creditworthiness and compliance of their business partners to minimize the risk of financial losses.
Challenges of Creditworthiness and Compliance Checks
Vetting international business partners is complex. Many financial managers struggle to obtain reliable and detailed information about customers’ financial situations, particularly when they operate in different jurisdictions. Traditional manual credit checks are not only time-consuming but often provide only a limited overview. According to a Creditsafe survey, 75 percent of finance managers need up to a full working day to make a single credit decision. At 63 percent of companies, up to five people are involved in this process.
Traditional checks often only cover basic financial metrics and do not provide in-depth insights into a company’s financial stability.
In addition, financial managers are grappling with the increasing complexity of international corporate structures. Group entanglements make it difficult to gain a clear overview of a business partner’s actual condition. Financial problems in a parent company can quickly affect subsidiaries and increase the risk of default. Without comprehensive information on a potential customer’s creditworthiness, such risks are difficult to identify.
In addition to credit checks, compliance with regulatory requirements is playing an increasingly important role. International business partners must increasingly comply with strict Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. The costs are significant: in the US and Canada alone, annual spending on Financial Crime Compliance amounts to $81.87 billion; globally, financial institutions spend an average of $72.9 million per year on AML and KYC processes. Automated compliance checks help verify that all business partners comply with regulatory requirements and detect deviations early.
“We’ve evolved from a credit reference agency to a data company. The data we hold is used as master data in our customers’ business systems, not just for credit decisions.”
Cato Syversen, Group CEO Creditsafe, The CEO Magazine
Efficient Risk Assessment and Automated Decisions with Creditsafe
Creditsafe provides detailed reports on more than 430 million companies in over 200 countries and territories, offering in-depth insights into the creditworthiness and compliance of international business partners. The database is sourced from over 9,000 sources and is updated five million times daily. In 2024, a total of 580 million Credit Reports were generated. These reports not only cover a company’s financial stability but also provide information on its payment ability and connections to other companies.
By using Creditsafe’s no-code automation solution, companies can automate previously manual decision-making steps based on creditworthiness and compliance data: analyzing payment history, assessing creditworthiness, and evaluating the management of potential customers. Decision-making within the company is decentralized, enabling employees outside of credit teams to make risk-optimized decisions in line with company-wide guidelines.
Solutions for Informed Decisions and Risk Minimization
Finance and credit managers of export-oriented companies need reliable, up-to-date, and detailed data to effectively manage their risks. Automated creditworthiness and compliance checks offer a powerful solution that saves time and reduces the risk of payment defaults.
Creditsafe offers tailored solutions that can be seamlessly integrated into existing corporate processes, enabling continuous monitoring of business partners. These systems provide real-time data on creditworthiness and support compliance with regulatory requirements. Additionally, companies can accelerate their decision-making processes based on this data through automated workflows, saving significant time.
Looking to optimize your credit checks and minimize risks in your international business relationships? The Creditsafe checklist offers valuable tips and further information. Click here to download.
Frequently Asked Questions
How many corporate insolvencies were there in Europe in 2024?
Global corporate insolvencies rose by 10 percent in 2024 and were 12 percent above the pre-crisis average from 2016 to 2019. In the Eurozone, the increase was 19 percent, and in Germany, it was even 23 percent. For 2025, Allianz Trade expects a further global increase of 6 percent.
What does manual creditworthiness checking cost companies?
According to a Creditsafe survey, 75 percent of finance managers need up to one full working day for a single credit decision. In 63 percent of companies, up to five people are involved in this process. The annual costs for financial crime compliance amount to over 81 billion dollars in the USA and Canada.
How does automated creditworthiness checking with Creditsafe work?
Creditsafe provides credit reports on over 430 million companies in more than 200 countries, drawn from over 9,000 sources. Through a no-code automation solution, companies can automate credit decisions based on rules: payment history, creditworthiness, and company connections are checked in real-time without manual research by employees.
What are KYC and AML checks and why are they important for exporters?
KYC (Know Your Customer) and AML (Anti-Money Laundering) are regulatory requirements that oblige companies to verify the identity and business backgrounds of their partners. This is particularly relevant for exporters because they work with partners in different legal jurisdictions. Automated systems continuously monitor compliance with these requirements and report deviations in real-time.
What risks arise from the interconnections of international business partners?
Financial problems in a parent company can quickly affect subsidiaries and trigger payment defaults. Without in-depth data on corporate structures and connections between companies, such risks remain invisible. In addition to creditworthiness data, Creditsafe provides information on company connections and ownership structures.
Further Reading
- DORA, AI Act, MiCA simultaneously: Why RegTech will become a mandatory investment in 2026
- CSRD Omnibus 2026: What the EU reform changes for SMEs
- Data Governance in SMEs: Practical check on the new DGG
Editor’s Reading Tips
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- Managed Services: Why SMEs outsource IT instead of building it
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