Articles from Creditsafe

The proposed tariff hikes by the U.S. administration have been on the tip of everyone’s tongues for the last few months. Importers are looking for ways to reduce overall costs and improve supply chain stability, while exporters are keen to retain customers. But a new study, Tariff Risks in the Supply Chain, released today by Creditsafe, reveals that tariffs could have a more detrimental impact on the global economy with 84% of U.S. businesses believing there’s a higher risk of a global recession in 2025 due to tariff shockwaves.

2024 was a milestone year for corporate bankruptcies, with well-known brands like Express, Joann, Red Lobster and TGI Friday’s filing for bankruptcy. The reality is that several factors contributed to the downfall of these companies, including declining sales, high debt loads, increasing costs and cash flow issues. The reality is that erratic payment practices are often highly indicative of cash flow issues and financial distress. But the ‘Cost of Late Payments’ study released by Creditsafe reveals that few businesses know how to spot the red flags or identify which risk patterns are indicative of cash flow issues.

Managing compliance is incredibly tough. It can be time-consuming, costly and create a ripple effect of problems across your business. At the same time, the number of data privacy, financial and sanctions violations have increased in the last year. The Barriers to Compliance Maturity study, released today by Creditsafe, reveals that compliance risks often take a backseat to corporate pressures and competitive threats.

Most businesses today rely on vendors and suppliers for many reasons – be it to manufacture goods before they’re shipped to customers or to perform certain services that will help the business maintain operations. Regardless, vendors and suppliers are a critical part of the operational flow of businesses. But as Creditsafe’s Battling Vendor Fraud research study reveals, vendor fraud can throw things into disarray if it’s not spotted early and can cost businesses millions of dollars.

With current market conditions being so unstable and inflation rising nearly every month, more U.S. businesses are struggling with cash flow. According to Creditsafe’s new research study, Perils of Rising Debt & DSO, growing long-term debt and missed customer payments can become the straws that broke the camel’s back, putting a strain on cash flow and pushing companies closer to bankruptcy.

Transportation companies face a myriad of challenges – from overcoming economic headwinds and rising interest rates to keeping warehouses organized and embracing digital technologies. These challenges have created a pressure-cooker situation, driving companies like Yellow Corporation and Hertz Global Holdings to file for bankruptcy. Today, Creditsafe, the global expert in credit monitoring and risk management, released its Financial & Bankruptcy Outlook: Transportation report, which examines how financial planning, cash flow management and Accounts Payable management have affected the financial health of U.S. transportation and warehousing businesses.

With long payment cycles, supply chain shortages, seasonality and a reliance on manual collections processes, logistics companies often struggle with managing cash flow. This is something that Josh Simon, Global Risk & Receivables Director at JAS Worldwide, knows all too well.