Genetec has consistently enjoyed strong demand for its products and services; however, growth for growth’s sake is not part of the company’s strategy. Senior leadership recognizes that they must manage the continued growth in a smart and sustainable way that supports long-term global business goals. A key part of this approach is deciding whether and how to extend credit to new and existing customers throughout the world while maintaining an appropriate credit risk profile.
A large part of the market for Genetec products includes large businesses and government agencies that often represent low credit risk. Since the company distributes its products through a network of installers and resellers, which tend to be smaller, evaluating their creditworthiness can be a long and difficult process that requires them to make some credit decisions based on incomplete information.
To ensure its continued growth and success, Genetec needed to strengthen its credit management process and resources. “We were looking for greater confidence when operating in foreign markets, for example, and we wanted to develop the ability to accept new customers in new markets without question,” said Alain Côté, the company’s chief financial officer. “We recognized that we needed access to the credit knowledge base and resources necessary to avoid taking on excessive credit risk.”
Many Canadian firms rely on basic risk protection from government agencies like Export Development Canada to support their international growth. However, given its global customer base, Genetec wanted to work with a commercial firm with a true international reach. As a private, global carrier, Euler Hermes has risk experts located directly in the markets its customers sell into – an informational advantage that can make a big difference. Euler Hermes also frees its customers from many administrative burdens typical of a credit insurance policy using our customer friendly Eolis online system for policy management, with no monthly sales reporting requirements.