How companies ruin their creditworthiness…

Many companies are unaware that their account management reflects their actual business situation. In difficult times, this can prove fatal.

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Financing options for companies are constantly expanding. The traditional house bank no longer necessarily plays the central role. It is being replaced by online platforms that allow companies and their advisors to quickly obtain offers tailored to their specific financing needs. These platforms handle the initial step of the required creditworthiness check for the prospective client before forwarding inquiries to their financing partners.

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Because platform operators do not know the company, they request bank statements. These are easy to analyze—and that is where things can become critical for the first time. If bank statements show returned direct debits due to insufficient funds, the credit rating drops drastically. If payments to customs authorities or bailiffs appear on the statements, companies usually have no chance of placing their credit requests with the platform's potential partners.

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So, the company tries its house bank instead. The bank will understand the situation because it knows the company. And yet, it becomes critical again! The house bank has an internal rating for its clients' account management—here, too, returned direct debits and overdrafts play a significant role. If this so-called account rating is too poor, access to a variety of subsidized loans is currently blocked. The company is then classified as a business in difficulty.

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Companies must consciously manage their account activity if they want to avoid becoming vulnerable in this area. Direct debits are convenient because you don't have to worry about paying liabilities on time. However, direct debits also go through even if the account is not covered. In times of liquidity shortages, there is only one option: the company must remain in control. Transfers can be actively managed, and returned direct debits can be avoided. Actively managing cash flows is time-consuming and requires planning—it is part of active crisis management.

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If liabilities cannot be met on time, talking to and coordinating with creditors is mandatory for every company. Planning cash flows allows the company to negotiate better with creditors regarding when payments will be made. In many cases, (insolvency-compliant) arrangements can be reached. This prevents enforcement actions that would inevitably appear on bank statements, damaging creditworthiness and reducing operational flexibility.

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Proactively addressing these issues and avoiding negative markers in account management can keep formal creditworthiness intact and open up room for solutions. No company should be denied access to emergency loans simply because of returned direct debits.