credit risk 2014 |monitoring survey on the credit management tools used by companies

rome, october 2014 (2014-055fo / 02)

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agenda technical specifications

observed phenomena

methodology aspects

terms and conditions

1

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technical specifications | nine years of studies

since 2006, Format has carried out every year a monitoring survey on credit management tools used by Italian companies.

the results of the monitoring study are transferred to subscribers ofthe survey for a fee.

customizations of the study can be arranged (e.g., analysis ofsurvey areas of specific interest to a customer). Customisations leadto an increase in costs. The results of the customisations remain theproperty of the Client.

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• Sample survey, carried out with CATI telephone interviews (computerassisted telephone interviews).

Description of the universe of companies of interest:

technical specifications | represented universe

The sampling plan with reference to turnover is slightly different from previous years.*

Italian companiesItalian companies Legal formLegal form TurnoverTurnover SizeSize

�Turnover between 2.5 million Euros and 149.9 million Euros

�Companies with more than 10 employees

Excluding:�farms;

�players in public

administration;

�players in the financial

sector;

�companies that work for

cash;

�companies with a single

customer or operating only

within their own group;

�companies that work

exclusively for the public

sector.

�Corporations

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technical specifications | analysis of companies

The sample of companies is stratified

according to the following criteria:

The sample of companies is studied according to the following criteria:

� Territory

� Company size

� Sector of economic activity (manufacturing, trade, services)

� Company turnover (2.5 to 9.9 mil; 10 to 49.9 mil; 50 to 149.9 mil)

� North West (Valle d'Aosta, Piemonte, Liguria, Lombardia)

�North East (Trentino Alto Adige, Veneto, Friuli Venezia Giulia, Emilia Romagna)

�Centre (Tuscany, Marche, Umbria, Lazio)

�South and Islands (Campania, Calabria, Abruzzo, Molise, Puglia, Basilicata, Sicily, Sardegna)

Size of companies Size of companies

3 classes based on the number of employees:

�Small companies (10-49 employees)

� Medium-sized companies (49-249 employees)

�Large companies (more than 249 employees)

Italian territoryItalian territory

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technical specifications | the "numbers" represented

Source: Istat 2014 (Census and subsequent updates).

From 2.5 to 9.9 mil € From 10 to 49.9 mil € From 50 €

North West 29743 11451 4095 45289

North East 12753 4633 1304 18690

Centre 18067 6066 1810 25943

South and Islands 20886 5630 1464 27980

ITALY 81449 27780 8673 117902

Total

Universe of the companies (numbers)

From 2.5 to 9.9 mil € From 10 to 49.9 mil € From 50 €

North West 236 114 74 424

North East 39 40 31 110

Centre 137 90 49 276

South and Islands 73 73 44 190

ITALY 485 317 198 1000

Sample of the companies (numbers)Total

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agenda technical specifications

observed phenomena

methodology aspects

terms and conditions

2 |

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observed phenomena | characterisation of the demand

Characterisation of the demand

Level of knowledgeof the tools for

credit management

Level of knowledgeof the tools for

credit management

Level of use of the tools for credit management

Level of use of the tools for credit management

users

ANALYSIS OF THE USERS

-Size

-Turnover

-Sector

-Geographical area

Note: for non-users the

reasons for "non-use" are

analysed.

Means within the company

Financial instruments

Business Information

Credit Insurance

Debt collection

Law Office

Factoring

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observed phenomena | services and competitors

Tools for credit management

Policies of use of the tools for

credit management

Level of

knowledge of

the single

tools for credit

management

Competitors

known and

used:-Notoriety

-Channels of

knowledge and

information

competitors

Note:

A) analysis of the best known

and most widely used

competitors for each single

instrument for credit

management.

B) How businesses have

come to know the suppliers.

C) On what basis they have

been chosen.

D) Who chooses the suppliers

within companies

E) How businesses keep each

other informed about

suppliers.

Means within the company

Financial instruments

Business Information

Credit Insurance

Debt collection

Law Office

Factoring

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observed phenomena | policies for credit management

How to use tools for reducing the risk of insolvency

Sales

information:

-Prevention of financial

risk for the company

-Assessment of

reliability of new

customers

-Prevention of risks of

commercial insolvency

Factoring:

-Credit management

and collection

-Advance

compensation of credit

transfers

-Taking the risk of

default on transferred

debts

Credit insurance:

-Assistance in the assumption and

management of trade receivables

-Cover and compensation for loss incurred (political risk)

-Cover and compensation for loss

incurred (economic risk)

-Prior assessment of customer solvency

-On-going customer monitoring

-Debt collection

Debt

collection:

-Quick tax

deductibility

-Reduction of times,

costs and workload

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observed phenomena | services

Purpose of

usage

(For example:

assessment of reliability

of new customers,

prevention of risks of

commercial insolvency

and so on)

Level of

knowledge

Tools for credit management

Features of

suppliers

considered

relevant

(For example: quality of

service, experience and

so on)

Level of use

Quantification

of demand

(Size and scope of the

segment of demand,

including analysis of

companies using each

tool)

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agenda technical specifications

observed phenomena

methodology aspects

terms and conditions

3 |

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Tecniche di

indagine�Respondents, recruited by telephone, are invited to fill in the survey questionnaire prepared on anencrypted site, with restricted access via password (CAWI system, Computer Assisted WebInterview). Questionnaire provided by Format. The questionnaires are drawn up in the respondents'languages.

�Respondents, recruited by telephone, are invited to fill in the survey questionnaire prepared on anencrypted site, with restricted access via password (CAWI system, Computer Assisted WebInterview). Questionnaire provided by Format. The questionnaires are drawn up in the respondents'languages.

�The personal data of the survey sample are extractedusing the most appropriate statistical techniques(systematic step) from official and recognized statisticalsources. For the purposes of sample management twolists of master data are created: a basic sample list (n =sample size), and a reserve sample list (twice that of thebasic sample), which is used for any master datareplacements that may become necessary on the basiclist.

�The personal data of the survey sample are extractedusing the most appropriate statistical techniques(systematic step) from official and recognized statisticalsources. For the purposes of sample management twolists of master data are created: a basic sample list (n =sample size), and a reserve sample list (twice that of thebasic sample), which is used for any master datareplacements that may become necessary on the basiclist.

SAMPLE PROCESSING

CONTACT METHOD

�National Institutes of Statistics for each country of reference.�National Institutes of Statistics for each country of reference.

SOURCE FOR THE DEFINITION OF THE UNIVERSE

methodology | technical aspects of the survey

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Tecniche di indagine

�Implementation of frequency distributions (absolute unweighted values, weighted percentages) ofall variables in the questionnaire crossed with the study domains of the sample. Results presentedwith statistical tables, synthesis graphs, double entry tables, longitudinal analysis of trends andconjuncture.

�Implementation of frequency distributions (absolute unweighted values, weighted percentages) ofall variables in the questionnaire crossed with the study domains of the sample. Results presentedwith statistical tables, synthesis graphs, double entry tables, longitudinal analysis of trends andconjuncture.

�The questionnaire will be administered at eachstatistical unit to the "reference person", i.e. the one whodue to the tasks carried out, classification or role, willprove to be suitable more for the interview than others, inthis case, CFO, Credit Manager, Managing Director orother individuals with similar roles.

�The questionnaire will be administered at eachstatistical unit to the "reference person", i.e. the one whodue to the tasks carried out, classification or role, willprove to be suitable more for the interview than others, inthis case, CFO, Credit Manager, Managing Director orother individuals with similar roles.

REFERENCE PERSON

DATA PROCESSING

methodology | technical aspects of the survey

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methodology aspects | how to transfer results

macrodata database (double entry table)

research report

The result of all the questions in the

questionnaire will be crossed with the study

areas of the sample: size of business,

geographic area, sector of economic activity.

Format: SPSS, Ms Excel.

Study results illusted through graphs and

summary with ample comments.

Format: Ms PowerPoint

Credit Risk

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agenda technical specifications

observed phenomena

methodological aspects

terms and conditions4 |

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conditions | purchase conditions

All rights for research are reserved.

Sale of research results is explicitly prohibited.

ICC/ESOMAR Code on Market and Social Research.

Code of Conduct for the Association of Italian Market Research

Institutes ASSIRM.

Italian Law on Privacy D.lgs 196/03.

rights

code of Conduct

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